CFPB sues America's largest banks for 'allowing fraud to fester' on Zelle

[BumRushDaShow]

Source: NBC News

Dec. 20, 2024, 12:04 PM EST / Updated Dec. 20, 2024, 3:59 PM EST


The Consumer Financial Protection Bureau is suing America's three largest banks, accusing the institutions of failing to protect customers from fraud on Zelle, the payment platform they co-own.

According to the suit, which also targets Early Warning Services LLC, Zelle's official operator, Zelle users have lost more than $870 million over the network’s seven-year existence due to these alleged failures.

“The nation’s largest banks felt threatened by competing payment apps, so they rushed to put out Zelle,” said CFPB Director Rohit Chopra in a statement. “By their failing to put in place proper safeguards, Zelle became a gold mine for fraudsters, while often leaving victims to fend for themselves.”

Read more: https://www.nbcnews.com/business/business-news/cfpb-sues-bank-of-america-jpmorgan-wells-fargo-over-zelle-fraud-rcna185007

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Link to CFPB PRESS RELEASE - CFPB Sues JPMorgan Chase, Bank of America, and Wells Fargo for Allowing Fraud to Fester on Zelle

[Firestorm49]

1. I'm not too surprised to see Wells Fargo on the list.

For some reason, WF is prone to corruption over and over again. (See, I spelled out Wells Fargo before I started using the acronym.)

I’m remodeling a room in our house. The remodeler offered financing through WF. I cringed but took the deal because that’s who the contractor uses for their financing. Wells now wants us to sign up for related bank programs, which I will not do. As much as many of us prefer not to do business with certain entities, sometimes we’re roped into it. The sooner the remodeling is paid off, the better.

Despite all of their fraud and corruption, WF marches on.

[Shipwack]

2. I hate WF with the passion of a 1000 burning suns.

They illegally foreclosed on my house while I was at sea.