Wells Fargo, JP Morgan Chase, and Bank of America are facing a lawsuit from the Consumer Financial Protection Bureau (CFPB) for allegedly allowing unchecked fraud on the Zelle payment app. The CFPB accuses the banks of prioritizing rapid launch over consumer safety in 2017, leading to over $870 million in fraud-related losses. The lawsuit alleges that victims were frequently denied relief and even advised to contact the fraudsters directly. The banks defend their actions, arguing that Zelle is a vital service for millions and that the lawsuit could harm the app's functionality.
Wells Fargo, JP Morgan Chase and Bank of America are being sued by the embattled Consumer Financial Protection Bureau over alleged unchecked fraud on the Zelle payment app — setting up a legal showdown that the incoming Trump administration could quash as soon as next month.
Billionaire Elon Musk, who is leading an effort to streamline the federal government through the so-called Department of Government Efficiency, or DOGE, criticized the agency in a November post on X that said, ' Delete CFPB. There are too many duplicative regulatory agencies.
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CFPB sues America's largest banks for 'allowing fraud to fester' on ZelleRob Wile is a Pulitzer Prize-winning journalist covering breaking business stories for NBCNews.com.
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CFPB sues three top U.S. banks for failing to protect consumers from Zelle fraudThe consumer financial watchdog says customers of the top three banks lost more than $870 million over seven years due to a lack of safeguards against fraud on the Zelle network.
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CFPB sues three top U.S. banks for failing to protect consumers from Zelle fraudThe consumer financial watchdog says customers of the top three banks lost more than $870 million over seven years due to a lack of safeguards against fraud on the Zelle network.
Read more »
In a lawsuit, CFPB says 3 top U.S. banks failed to protect consumers from Zelle fraudThe consumer financial watchdog says customers of the top three banks lost more than $870 million over seven years due to a lack of safeguards against fraud on the Zelle network.
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In a lawsuit, CFPB says 3 top U.S. banks failed to protect consumers from Zelle fraudLaurel Wamsley is a correspondent on NPR's National Desk, where she covers cities.
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CFPB Sues Banks Over Zelle FraudThe Consumer Financial Protection Bureau (CFPB) is suing Bank of America, JPMorgan Chase, and Wells Fargo, alleging they prioritized launching the Zelle payment network over protecting users from fraud.
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