Consumer complaint received 2025-01-21 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Early Warning Services, LLC
State: GA

Complaint narrative:
Subject : Formal Complaint Regarding Fraudulent Zelle Transactions, Lawsuit, and Request for Compensation Dear Consumer Financial Protection Bureau ( CFPB ), I am writing to file a formal complaint regarding the fraud I experienced on the Zelle payment platform, which resulted in a loss of {$3500.00}, and my subsequent inability to recover the funds from my bank. This issue is particularly concerning given the recent lawsuit filed by the CFPB against XXXX XXXX XXXX XXXX XXXX XXXXXXXX, and XXXX XXXX for failing to protect consumers from fraud on the Zelle platform. 

Overview of the Issue : Loss Amount : {$3500.00} Payment Platform : Zelle Banks Involved : [ Bank Name ] Date of Incident : [ Date of the incident ] I was a victim of a fraudulent transaction on Zelle, and despite my immediate efforts to report the fraud to my bank, I was unable to recover the funds. As per federal regulations, banks are required to reimburse customers for unauthorized payments, such as when accounts are hacked. However, in my case, I was tricked into making a payment by a fraudster, which falls within the category of authorized but fraudulent payments. Despite this, the bank has failed to provide me with the necessary reimbursement or protections under the law. 

Relevant Laws and Legal Violations : 1. Electronic Fund Transfer Act ( EFTA ) - 15 U.S.C. 1693 et seq.

Under the EFTA, consumers are entitled to protection against unauthorized transactions and have the right to dispute fraudulent charges. The failure of Zelle, XXXX XXXX XXXX XXXX XXXX  XXXX, and XXXX XXXX to adequately protect consumers from fraud constitutes a violation of this law. 
2. Truth in Lending Act ( TILA ) - 15 U.S.C. 1601 et seq.

The Truth in Lending Act requires financial institutions to disclose the terms and conditions of services, including the risks involved in using platforms like Zelle. The failure to clearly disclose these risks and protect consumers from fraud is a violation of this statute.

3. Consumer Financial Protection Act ( CFPA ) - 12 U.S.C. 5536 The failure to protect consumers from fraud on Zelle, and the lack of transparency in the process for recovering funds, is a violation of the CFPA, which ensures that financial institutions treat consumers fairly and transparently.

4. Regulation E - 12 C.F.R. 1005.1 et seq. 
Regulation XXXX sets forth the rules for electronic fund transfers and mandates that banks must investigate and resolve complaints related to unauthorized transactions. The failure to reimburse me for the fraudulent {$3500.00} transaction is a clear violation of this regulation. 

Request for Compensation : In light of the above, I am requesting the following : 1. Refund of {$3500.00} for the fraudulent transaction made via Zelle, as required by the EFTA and Regulation E.

2. {$5000.00} in Damages to compensate for the emotional distress, fees, and inconvenience caused by this incident, as well as the undue stress of being unable to recover my funds.

3. Immediate Removal of Any Negative Entries from my credit file associated with the fraud or related to the companies involved in the lawsuitspecifically XXXX XXXX  XXXX, XXXX XXXX, XXXX XXXX, and Zelle. This includes any inquiries or debts resulting from these events. 
4. Compensation of {$1000.00} per Item on My Credit Report for each item that remains on my credit file, relating to the banks or companies mentioned, if not removed within 30 days. I request this compensation on a per-item basis across all three credit bureaus ( XXXX, XXXX, XXXX ) .

Request for Immediate Action : I urge the CFPB to investigate this issue and ensure that my rights under the Electronic Fund Transfer Act, Truth in Lending Act, and Consumer Financial Protection Act are upheld. I also request that my case be handled with urgency given the significant financial and emotional impact this incident has had on me. 

Thank you for your attention to this matter. I look forward to your prompt response and assistance in resolving this issue

Company response to consumer: Closed with explanation