Bank sends wrong person $ and it immediately has to be returned or charged will be filed. If I Zelle the wrong person, I am straight SOL. Why the difference?

Question

Exactly what title says, why is there no way to recoup zelle definitely or wire transfer(maybe?) but if banks send money to wrong person there are severe penalties for not returning.

In: 650

Answer 1

The bank has a claim against you for the mistakenly sent funds under a “constructive trust” theory. In the case of you sending funds to the wrong person on Zelle, you have the same claim. The bank probably also has contractual rights.

The difference is enforcing the claim. Instead of having to file a lawsuit, the bank can often just reverse the transaction.