The Consumer Financial Protection Bureau has dropped its lawsuit against the operator of peer-to-peer payment network Zelle and three big banks that use it.
The lawsuit, filed in December, accused Zelle’s parent company, Early Warning Services, along with JPMorgan Chase, Bank of America, and Wells Fargo of improperly handling fraud complaints and denying victims reimbursement, per CNBC. In a filing on Tuesday, the CFPB announced the dismissal of the case “with prejudice." The agency under the Trump administration has dropped other Biden-era cases in a similar manner and agreed to not pursue them again, making it unlikely that victims will see their funds recovered, former CFPB head of enforcement Eric Halperin told CNBC.
