The US Consumer Financial Protection Bureau (CFPB) has dropped a lawsuit against three major banks – JPMorgan Chase, Bank of America, and Wells Fargo – over their handling of the payment service Zelle. The CFPB had accused the banks of failing to protect consumers from fraud costing hundreds of millions of dollars.
In December, the agency filed lawsuits against the banks, alleging they rushed the Zelle service to market without implementing proper user safeguards. However, in a statement, JPMorgan said tackling fraud required a joint effort between the public and private sector, and the bank looked forward to cooperating with others “to effectively address these crimes at their source.”
The CFPB’s decision comes after President Donald Trump’s vow to shut down the agency, which has been virtually shuttered. However, government lawyers have maintained that the administration intends to operate a “streamlined” CFPB in keeping with its legal obligations.
The drop in lawsuits is part of an unprecedented move by the CFPB, which has also dropped seven enforcement cases brought under former President Joe Biden’s administration.
Source: https://www.reuters.com/legal/us-cfpb-drops-zelle-case-against-jpmorgan-bofa-wells-fargo-2025-03-04