CFPB Sues JPMorgan, Bank of America Over Alleged Zelle Fraud (3)

The Consumer Financial Protection Bureau sued JPMorgan Chase & Co., Bank of America Corp. and Wells Fargo & Co. along with the parent company of Zelle alleging the firms rushed a peer-to-peer payment network to market without adequate consumer protections.

“By their failing to put in place proper safeguards, Zelle became a gold mine for fraudsters, while often leaving victims to fend for themselves,” said CFPB Director Rohit Chopra in a statement Friday.

Rohit Chopra, director of the Consumer Financial Protection Bureau

Photographer: Al Drago/Bloomberg

A Zelle spokesperson said the CFPB’s lawsuit is legally and factually flawed while a representative for JPMorgan called them “a last-ditch effort in pursuit ...