Mary-Denise Roberts and Stephen K. Roberts v. USAA Federal Savings Bank, Apple Payments, Inc., and Green Dot Bank

Summary

The United States District Court for the Middle District of Florida grants Apple Payments, Inc.’s motion to dismiss claims brought under the Electronic Fund Transfers Act and Regulation E. The court concludes that the complaint does not plausibly allege that Apple is a financial institution because it does not allege that Apple holds consumer accounts, issues an access device, or agrees with consumers to provide electronic fund transfer services. The claims against Apple are dismissed without prejudice, and plaintiffs are permitted to file an amended complaint.

Holdings

1. The complaint failed to plausibly allege that Apple Payments, Inc. was a financial institution subject to the EFTA because it did not allege facts showing that Apple held a consumer account, issued an access device, or agreed with a consumer to provide electronic fund transfer services.
2. Allegations that Apple enabled financial transactions through a banking-as-a-service relationship with Green Dot and exercised operational control over payment processes did not plausibly allege that Apple held a consumer account.
3. The complaint did not plausibly allege that Plaintiffs' Apple Pay credentials were an access device within the meaning of the EFTA because it alleged that the credentials accessed Mrs. Roberts's iPhone, not the consumer account from which the funds were transferred.

Questions Presented

1. Whether the complaint plausibly alleged that Apple Payments, Inc. was a financial institution subject to the Electronic Fund Transfer Act.
2. Whether the complaint plausibly alleged that Apple indirectly held a consumer account, issued an access device, or agreed with consumers to provide electronic fund transfer services.
3. Whether Plaintiffs could rely on factual allegations and legal theories asserted for the first time in their opposition to the motion to dismiss.

Disposition

dismissed