CFPB drops JPMorgan, Bank of America, Wells Fargo lawsuit over Zelle fraud

Since Acting Director Russell Vought has taken over the CFPB, the agency has dropped at least a half dozen cases brought by his predecessor, Rohit Chopra.

In December, the CFPB sued Early Warning Services, which runs the peer-to-peer payments network, as well as JPMorgan Chase, Bank of America and Wells Fargo, alleging that the firms failed to properly investigate fraud complaints or give victims reimbursement.

The CFPB said customers of the three banks have lost more than $870 million since the launch of Zelle in 2017. The service was launched to provide bank customers an alternative to peer-to-peer platforms including PayPal. Last year Zelle crossed $1 trillion in total volumes, which it said was the most ever for a peer-to-peer platform.

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