CFPB sues JPMorgan, Bank of America and Wells over Zelle

The Consumer Financial Protection Bureau sued the operator of Zelle and three large banks “for failing to protect consumers from widespread fraud on America’s most widely available peer-to-peer payment network.” The agency said, “Early Warning Services, which operates Zelle, along with three of its owner banks – Bank of America (BAC), JPMorgan Chase (JPM), and Wells Fargo (WFC) – rushed the network to market to compete against growing payment apps such as Venmo and CashApp, without implementing effective consumer safeguards.” The CFPB says customers of the three banks have lost more than $870M over the network’s “seven-year existence due to these failures.”