CFPB lets banks off the hook and drops Zelle lawsuit
The Consumer Financial Protection Bureau (CFPB) today dismissed a lawsuit against Early Warning Services, the company that runs the Venmo-like Zelle payment platform, as well as the three banks that share ownership of it, reports CNBC.
The CFPB, which enforces regulations against the financial services industry, had claimed in its December 2024 lawsuit that the organizations had not effectively protected Zelle users “from widespread fraud,” causing customers of Bank of America, JPMorgan Chase, and Wells Fargo to lose a combined $870 million since Zelle launched in 2017.
The regulator’s filing says it is dismissing its court case with prejudice, meaning that it can’t bring its claims again. Eric Halperin, the CFPB’s former head of enforcement, told CNBC that doing so also means there’s no way “of clawing back funds for consumer relief.” Representatives from Zelle, JPMorgan, and the Consumer Bankers Association each praised the ruling in statements to the outlet.
President Donald Trump’s administration, including Elon Musk’s Department of Government Efficiency (DOGE), have pushed hard to effectively shut down the CFPB. The agency has only published one enforcement action since President Donald Trump’s inauguration, and under acting Director Russell Vought it’s dropped several cases that were brought by its Biden-era leader, Rohit Chopra. Agency employees are currently fighting in court to halt the move, alleging they’ve been prevented from carrying out legally mandated duties — including responding to urgent consumer complaints.
The Consumer Financial Protection Bureau (CFPB) today dismissed a lawsuit against Early Warning Services, the company that runs the Venmo-like Zelle payment platform, as well as the three banks that share ownership of it, reports CNBC. The CFPB, which enforces regulations against the financial services industry, had claimed in its…
Recent Posts
- Steam Machine and Steam Frame are coming ‘this summer’
- Valve says it’s ready to launch the Steam Machine this summer
- Best Buy slashes up to $400 off Apple tech in a limited-time sale — get AirPods, MacBooks, iPads and Apple Watches from $99.99
- The Instagram Plus subscription has officially launched
- Wired found code for an unreleased facial recognition feature in Meta’s AI app
Archives
- June 2026
- May 2026
- April 2026
- March 2026
- February 2026
- January 2026
- December 2025
- November 2025
- October 2025
- September 2025
- August 2025
- July 2025
- June 2025
- May 2025
- April 2025
- March 2025
- February 2025
- January 2025
- December 2024
- November 2024
- October 2024
- September 2024
- August 2024
- July 2024
- June 2024
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023