Credit: Edgar Cervantes / Android Authority
- The CFPB has filed a lawsuit against Zelle and three major US banks, alleging that they failed to adequately protect consumers from fraud.
- The lawsuit claims that these financial institutions rushed Zelle to market without proper safeguards, resulting in substantial consumer losses.
- Zelle has responded by stating that the lawsuit is legally and factually flawed, asserting its industry-leading fraud prevention policies.
The Consumer Financial Protection Bureau (CFPB) has launched a lawsuit against Zelle, the popular peer-to-peer payment service, and three of its biggest backers: Bank of America, JPMorgan Chase, and Wells Fargo. The core issue is allegations that Zelle didn’t do enough to shield users from financial scams.
Zelle, known for its lightning-fast money transfers, has become a staple for millions of Americans. However, the CFPB’s investigation paints a less rosy picture, suggesting that the platform’s rapid rise came at the expense of basic security measures.