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Among the CFPB allegations are that Zelle and the banks failed to implement proper fraud prevention safeguards, allowing scammers to proliferate, and that banks failed to properly investigate customer complaints about Zelle. The agency said its lawsuit was intended to stop"unlawful conduct," obtain redress for consumers impacted and seek a civil monetary penalty.Zelle responded by saying it was"fully prepared" to defend itself against"this meritless lawsuit."
Meanwhile, Bank of America said that"more than 99.95 percent of transactions across the Zelle network go through without incident," and added that"we strongly disagree with the CFPB's effort to impose huge new costs on the 2,200 banks and credit unions that offer the free Zelle service to clients."Early Warning Services is co-owned by seven of the largest banks in the U.S., also including PNC Bank, Truist, U.S. Bank, and Wells Fargo.
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