A bank is now being scrutinized for delaying a small transfer for 6 months, leaving a portion of the customer’s money stuck in limbo.
A North Carolina woman’s struggle with a billion-dollar bank over a failed Zelle transfer highlights ongoing issues with digital payment platforms and customer service in the banking industry.
Karen Weber, a Raleigh resident, faced a six-month ordeal to recover $300 that never reached her friend’s account, only seeing resolution after local media intervened, according to a recent report by 5 On Your Side WRAL.
Weber’s troubles began during a routine attempt to reimburse a friend for a shared vacation expense.
Using Zelle, a popular peer-to-peer payment service, Weber initiated a $1,300 transfer from her First National Bank account to her friend’s Truist Bank account.
While $1,000 was successfully delivered, the remaining $300 never arrived, despite being deducted from Weber’s account.
“The bank kept insisting the funds were sent, but my friend’s account showed nothing,” Weber told WRAL.
Despite filing a dispute and repeatedly contacting First National Bank, Weber’s pleas went unanswered for over six months.
The bank maintained that the transfer was complete, leaving Weber caught in a frustrating loop of unhelpful responses.
It was only after she enlisted the help of 5 On Your Side, a local news outlet known for consumer advocacy, that progress was made.
Within a month of media involvement, the two banks collaborated, and the missing $300 finally appeared in her friend’s account.
“It shouldn’t take media pressure to get a bank to do the right thing,” Weber remarked.
This incident underscores broader concerns about Zelle, a service operated by Early Warning Services (EWS) and used by major banks like JPMorgan Chase, Bank of America, and Wells Fargo, which collectively handle 73% of Zelle’s $806 billion in transactions in 2023.
A 2024 Senate report criticized these banks for inadequate fraud and scam protections, noting that only 15-20% of scam disputes were reimbursed in the six months following policy changes.
Weber’s case, while not a scam, highlights systemic issues with dispute resolution and customer support in digital banking.
Neither First National Bank nor Truist Bank provided comments to WRAL, and Zelle’s parent company, EWS, emphasized that it acts solely as a messaging service facilitating transfers between regulated institutions, not holding or managing user funds.
Yet, Weber’s experience raises questions about accountability and transparency in the rapidly growing world of instant payment platforms, and the role banks play in.
As digital payments become ubiquitous, cases like Weber’s serve as a cautionary tale for consumers.
Experts advise users to double-check recipient details before sending money via Zelle and to promptly report issues to their bank while keeping detailed records.
For Weber, the resolution was a relief, but the ordeal left her wary.
“I’ll think twice before using Zelle again,” she said.
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