CFPB Sues JPMorgan, Bank of America, Wells Fargo, and Early Warning Services Over $870 Million Zelle Fraud

Dec 20, 2024, 07:22 PM

The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against JPMorgan Chase, Bank of America, Wells Fargo, and Zelle's parent company, Early Warning Services, alleging that the banks failed to protect consumers from widespread fraud on the Zelle payment platform. The lawsuit claims that customers have collectively lost over $870 million to fraud since Zelle's launch in 2017. The CFPB accuses the banks of rushing the launch of the peer-to-peer payment network without implementing adequate consumer protections, allowing fraud to proliferate. The complaint highlights that the banks did not properly investigate fraud complaints or provide reimbursements to victims, which the CFPB argues constitutes a violation of consumer financial laws. This legal action comes amid a significant change in leadership at the CFPB.