tl;dr
The Consumer Financial Protection Bureau (CFPB) has dropped a lawsuit against JPMorgan Chase, Wells Fargo, Bank of America, and Zelle, accusing them of failing to protect consumers from $870 million in losses on the Zelle network over seven years. The lawsuit, filed in December, alleged that Zelle’s...
The Consumer Financial Protection Bureau (CFPB) has dropped a lawsuit against JPMorgan Chase, Wells Fargo, Bank of America, and Zelle, accusing them of failing to protect consumers from $870 million in losses on the Zelle network over seven years. The lawsuit, filed in December, alleged that Zelle’s parent company and the big banks often left fraud victims on the instant payments platform to "fend for themselves." The CFPB dismissed the action with prejudice, without an explanation, following the Trump administration's efforts to weaken the agency by halting most of its operations, including investigations and rule-making. This reflects the administration's goal of cutting federal bureaucracy, with Trump criticizing the agency as a source of "waste, fraud, and abuse" that has harmed financial institutions. The CFPB's lawsuit followed an investigation by the Senate’s Permanent Subcommittee on Investigations, which alleged that Zelle and the banks routinely fail to adequately protect and reimburse consumers using the network.
The Consumer Financial Protection Bureau (CFPB) has abruptly dropped a lawsuit accusing JPMorgan Chase, Wells Fargo, Bank of America, and Zelle of failing to protect consumers from $870 million in losses on the Zelle network over seven years. The lawsuit, filed in December, alleged Zelle’s parent company and the big banks often left victims of fraud on the instant payments platform to “fend for themselves.” Today, The CFPB told the court that it’s dismissing the action with prejudice, and without an explanation. The move follows the Trump administration’s efforts to weaken the agency by halting most of its operations, including investigations and rule-making. The administration’s stance reflects a broader goal of cutting federal bureaucracy, with Trump labeling the agency as a source of “waste, fraud, and abuse” that has harmed financial institutions. The CFPB’s lawsuit followed an investigation by the Senate’s Permanent Subcommittee on Investigations led by Democratic Senator Richard Blumenthal, who alleged Zelle and the banks routinely fail to adequately protect and reimburse consumers who use the popular network.