CFPB Dismisses Lawsuit Against Zelle, U.S. Banks

The CFPB dropped charges against Zelle, JP Morgan Chase, Wells Fargo and Bank of America (the three largest United States-based banks that make up the most transactions).

The original suit was based on the premise that the firms did not investigate fraud or provide proper compensation for consumers who were victims of fraud.

The CFPB has dropped several cases since the new administration has taken over and Russel Vought has been in charge.

While Zelle has grown into having well over $1 trillion in transactions, the CFPB has also stated that customers of just those three banks have lost close to a billion dollars in fraud through the peer-to-peer platform.

Advocates of Zelle have pushed back on the charges and welcomed the dismissal.