The nation’s largest banks felt threatened

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P. Morgan Chase and Wells Fargo — alleging that they failed to protect consumers from widespread fraud on the peer-to-peer payment network. The agency’s complaint alleged that the defendants violated consumer financial protection laws by failing to implement safeguards on the payment network and denying assistance to consumers who filed fraud complaints, the CFPB said in a Friday (Dec. 20) press release. It also alleged that the three banks failed to properly investigate complaints or reimburse consumers for fraud and errors, according to the release.

by competing payment apps, so they phone number russia rushed to put out Zelle, CFPB Director Rohit Chopra said in the release. By their failing to put in place proper safeguards, Zelle became a gold mine for fraudsters, while often leaving victims to fend for themselves. Zelle spokesperson Jane Khodos said in a Friday statement that the CFPB’s complaint is legally and factually flawed, that the timing of its lawsuit appears to be driven by political factors, and that Zelle is fully prepared to defend this meritless lawsuit.

Zelle leads the fight against scams and fraud and has industry-leading reimbursement policies that go above and beyond the law, Khodos said. The CFPB’s misguided attacks will embolden criminals, cost consumers more in fees, stifle small businesses and make it harder for thousands of community banks and credit unions to compete. The statement added that Zelle has attempted to engage and cooperate with the CFPB on this matter, that 99.95% of payments sent via Zelle have no report of scams or fraud, and that the CFPB’s lawsuit will incentivize criminals to make false claims against banks and credit unions.