In the past seven years, customers of the top three banks suffered losses exceeding $870 million, attributed to the banks' inadequate fraud protection measures concerning Zelle.
Rohit Chopra, CFPB Director, stated, "The nation's largest banks felt threatened by competing payment apps, so they rushed to put out Zelle," leading to a lack of necessary fraud safeguards.
Zelle's response described the CFPB's lawsuit as "meritless," asserting that the legal claims were founded on 'flawed' principles and claimed political motivations behind the timing of the lawsuit.
The lawsuit aims to halt unlawful practices, secure compensation for consumers harmed, and impose civil penalties, reflecting a broader effort to enforce consumer protections against financial fraud.
Collection
[
|
...
]