{"id":368882,"date":"2023-07-18T15:04:18","date_gmt":"2023-07-18T20:04:18","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/litigation\/filing-a-lawsuit\/can-i-sue-a-money-transfer-service.html"},"modified":"2023-07-18T15:14:00","modified_gmt":"2023-07-18T20:14:00","slug":"can-i-sue-a-money-transfer-service","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/litigation\/filing-a-lawsuit\/can-i-sue-a-money-transfer-service.html","title":{"rendered":"Can I Sue a Money Transfer Service?"},"content":{"rendered":"\n
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Can I Sue a Money Transfer Service?<\/h1>\n
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\n By Robert Rafii, Esq.<\/a> | Legally reviewed by Steven Ellison, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

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You can sue a money transfer service if it violated the law or its contract with you. But most services include arbitration clauses in their user agreements, which may limit your ability to sue in court. If this clause is unenforceable or the service fails to follow legal procedures, you may still have grounds for a lawsuit or class action.<\/p>\n\n <\/div>\n\n

Most of the time, you’ll be bound by a user agreement that requires you to go to arbitration before you can sue. Sometimes you’ll have no lawsuit option other than arbitration, and outside of that, you’ll only be able to sue in small claims court.<\/p>\n

This article covers lawsuit options outside of arbitration and small claims for legal issues with a money transfer service. For in-depth information on arbitration and small claims with money transfer apps, see FindLaw’s Can I Take Legal Action Against a Money Transfer App Like Venmo or Cash App?<\/a><\/p>\n

You can also talk to a consumer protection attorney<\/a> near you for legal advice. An experienced attorney will be your strongest advocate throughout this complicated and overwhelming process. They can review the user agreement to determine whether the arbitration clause is enforceable and assess whether your issue qualifies for a lawsuit outside of arbitration or small claims.<\/p>\n

Potential Legal Issues With Money Transfer Applications<\/h2>\n

Money transfer apps and payment services like Paypal, Cash App, Venmo App, and Zelle<\/a> offer purchase protections to their users and even actively try to make their account holders aware of scams and security risks that can cause unauthorized transactions. In general, you \u2014 not the payment apps \u2014 are responsible if you fall for a scammer’s tricks.<\/p>\n

For example, if you downloaded a virus posing as a mobile app and all of your account information, such as your social security number, social media, and Visa credit card information was stolen, the most you’ll be able to do is to alert law enforcement and try to track down and sue the scammer directly.<\/p>\n

On the other hand, what if the money transfer service lost your money or sent it to the wrong recipient without your fault? What if your personal information, such as your bank account, debit card account, driver’s license, Mastercard payment method, or phone number was misused or leaked by a money transfer app?<\/p>\n

In these situations, you may be able to file a lawsuit against them. To learn whether you have a case against a money transfer service, consult with a consumer protection attorney.<\/a><\/p>\n

Overcoming Arbitration and Small Claims Requirements<\/h2>\n

You should remember that your use of a money transfer platform will always be governed by a user agreement. For example, a Venmo account, which is owned by Paypal, Inc., will bind you to Venmo’s terms of use contract<\/a>.<\/p>\n

If you’re one of the rarer types who read these lengthy user agreements (such as the one linked above), you’ll see sentences along the lines of \u201cThe terms include an agreement to resolve disputes by arbitration on an individual basis." In fact, as of the time of this writing, that’s exactly what the Venmo User Agreement<\/a> says in part.<\/p>\n

As mentioned at the outset of this article, we’ve got a separate article on forced arbitrations and small claims for suing money transfer apps<\/a>. But there are certain situations in which you can skip arbitration or small claims court:<\/p>\n