Electronic Funds Transfer Act

January 27, 2025 A CFPB order requires Block to refund consumers up to $120 million, pay a $55 million civil penalty and bring its customer service and dispute investigation practices in line with federal law.

November 20, 2024 A $1.025 million settlement has been reached to resolve a class action that claimed loanDepot unlawfully debited funds from customers’ bank accounts on a reoccurring basis.

September 26, 2024 A class action over Numi's Prestige prepaid debit cards used to return confiscated money to arrested individuals upon their release has settled for $4 million.

July 11, 2024 A class action has been filed by two consumers who claim Wells Fargo unlawfully failed to reimburse them after a fraudster made an unauthorized wire transfer from their bank account.

April 22, 2024 A lawsuit accuses Central Bank of Kansas City of issuing prepaid debit cards saddled with fees to individuals arrested, detained and released from custody to have confiscated cash returned to them.

February 26, 2024 A class action alleges Wondershare lures consumers into automatically renewing subscriptions without making proper disclosures or obtaining customer consent.

February 22, 2024 Chipotle faces a class action lawsuit over its apparent policy of refusing to refund purchases made with gift cards and instead providing limited meal vouchers.

February 16, 2024 A lawsuit claims American Express violated federal law by failing to conduct a timely investigation after being notified that a Serve card containing a consumer's tax refund was stolen.

December 7, 2023 A class action alleges the companies behind WithULoans.com run an illegal “rent-a-tribe” scheme whereby Illinois residents are issued loans with unlawfully high interest rates.

October 10, 2023 A class action accuses National Geographic Partners of unlawfully enrolling consumers in recurring, paid subscriptions without consent.

February 7, 2023 A class action lawsuit accuses OnStar of charging consumers without consent after they have cancelled their subscription to the roadside assistance service.

February 3, 2023 A class action lawsuit accuses Coursera, Inc. of unlawfully subscribing consumers to recurring paid programs and later charging them without authorization when the subscription renews automatically.

November 9, 2022 A class action alleges subscription streaming service FloSports has broken the law by routinely taking money out of consumers’ bank accounts without written authorization.

September 7, 2022 A proposed class action lawsuit accuses TD Bank, N.A. of having a “history and routine practice” of opening accounts in consumers’ names without authorization.

August 25, 2022 Coinbase faces a class action over its apparently poor track record of safeguarding users’ accounts from unauthorized access and theft and then helping out those whose assets have been stolen.

June 24, 2022 PayPal faces a proposed class action over its alleged refusal to reimburse Venmo users who’ve lost money due to fraud.

June 2, 2022 A Seattle resident has filed a proposed class action in which he claims to have been the victim of a scam targeting Wells Fargo Bank customers who use Zelle.

January 31, 2022 A class action alleges American Income Life Insurance Company fraudulently used a customer’s checking account to complete the policy sign-up process for her sister.

January 19, 2022 A proposed class action alleges PayPal has unilaterally seized funds from users’ accounts without cause or any fair or due process.

December 20, 2021 A proposed class action alleges Bank of America, N.A. has failed to protect prepaid debit cards containing New Jersey residents’ unemployment benefits from fraud.

October 20, 2021 A class action claims Life Alert unlawfully debited consumers’ accounts on a recurring basis after they requested cancelation of the company’s services.

September 22, 2021 Student Loan Financial Assistance has preyed on student loan borrowers by misrepresenting the cost and features of federal loan repayment programs, a class action alleges.

July 22, 2021 A class action claims Bank of America failed to protect the security of debit cards issued to California unemployment benefits recipients.

July 19, 2021 Legion Auto Protection Services and two others face a lawsuit over their alleged practice of robocalling consumers to solicit sales of vehicle service contracts.

May 18, 2021 A Nevada resident alleges Nationstar Mortgage (Mr. Cooper) wrongfully withdrew from his bank account two additional mortgage payments without authorization to do so.

April 21, 2021 Bank of America faces another class action that claims the financial institution has lacked urgency in securing unemployment benefits for Californians amid the COVID-19 pandemic.

February 16, 2021 A class action alleges DermaSet has made recurring debit transactions without first securing written authorization to do so or providing mandatory disclosures in a clear and conspicuous manner.

January 19, 2021 A lawsuit alleges Bank of America failed to prevent and address fraud involving unemployment insurance benefits provided through prepaid debit cards in California.

December 8, 2020 A class action alleges Cabrillo Credit Union has failed to provide customers with a clearly understandable stand-alone disclosure document, or obtain opt-in consent, before assessing overdraft fees.

November 30, 2020 Wells Fargo faces a proposed class action in which the bank stands accused of failing to clearly disclose its overdraft practices to accountholders.

October 26, 2020 A class action claims Cash App-maker Square, Inc. and Sutton Bank's dispute resolution process for electronic fraud violates the Electronic Funds Transfer Act.

August 5, 2020 A class action lawsuit accuses Bank of America of a host of abuses toward mortgage borrowers, including the opening of escrow accounts without authorization.

July 17, 2020 Disney Destinations faces a class action after allegedly charging annual passholders in early July 2020 "all at once" for monthly payments suspended while parks were closed due to the pandemic.

July 14, 2020 LinkedIn faces a class action after a report surfaced that the social media company's app reads the contents of iPhone and iPad users' universal clipboards without consent.

March 17, 2020 SEIU, United Healthcare Workers-West faces a proposed class action that claims the union automatically debited membership dues from a man's bank account without authorization to do so.

January 20, 2020 A class action claims First Savings Bank charged overdraft fees on transactions that did not actually overdraw consumers’ accounts.

October 2, 2019 The Western Union Company has been hit with a proposed class action in which a Pennsylvania man claims the financial services firm paid out his remittance transfer to the wrong recipient and mishandled the error resolution process.

May 8, 2019 Two homeowners have filed suit against Nationstar Mortgage LLC, which does business as Mr. Cooper, after the mortgage servicer allegedly made several unauthorized electronic fund transfers from their account.

May 3, 2019 A lawsuit claims that sporting goods co-op Recreational Equipment, Inc., also known as REI, issued gift cards with illegal expiration dates.

January 29, 2019 A Wisconsin resident alleges in a proposed class action that Vertical Fitness Group, LLC, which operates as Xperience Fitness and Club 7776, failed to provide him with a copy of his training agreement and debited his account without authorization.

November 19, 2018 A lawsuit claims that Lexington Law Firm debited unauthorized recurring charges from a consumer’s bank account.

September 13, 2018 A lawsuit accuses Rocky Mountain Auto Brokers of unlawfully requiring customers who enter into installment sales contracts to enroll in automatic payment plans.

August 3, 2018 According to a lawsuit, Firstmark Services failed to provide the plaintiff essential information on certain rights pertaining to electronic funds transfers.

June 28, 2018 A lawsuit has been filed against SEFCU over the federal credit union’s alleged practice of assessing improper overdraft fees on checking account transactions.

May 2, 2018 National General Insurance Company is the defendant in a proposed class action wherein the plaintiff claims the company overstepped the Electronic Funds Transfer Act.

April 6, 2018 A proposed class action has been filed against DirecTV, LLC and Cable Vision CCTV, Inc. over claims that the companies unlawfully withdrew money from a consumer’s account without his authorization.

March 15, 2018 Summit Credit Union is facing a Wisconsin man’s claims that the credit union charged consumers improper overdraft fees that violated its own policies and federal law.

December 21, 2017 A lawsuit claims 16 defendants are behind a 'rent-a-tribe' scheme in which the companies, 'borrowing' sovereign immunity, prey on cash-strapped consumers.

April 7, 2017 A proposed class action claims Enhanced Recovery Company, LLC illegally debited proposed class members' bank accounts without first obtaining written authorization.

February 13, 2017 Website hosting groups Smart Living Company and EMerchantclub, LLC are the defendants in a proposed class action lawsuit.