The Consumer Financial Protection Bureau is investigating major U.S. banks for how they handled customer funds on the Zelle network of peer-to-peer payments platform. The Wall Street Journal reported. Wednesday.
The investigation is reportedly focusing on major banks including JPMorgan, Bank of America and Wells Fargo.
JPMorgan responded to the CFPB’s investigation into Zelle and said in a filing last week that it was considering whether to sue U.S. consumer protection groups over the CFPB’s investigation.
Wells Fargo has previously disclosed in public filings that government authorities are investigating the bank’s handling of customer disputes through Zelle.
The surge in fraud and deception at Zelle, which is owned by seven major banks including JPMorgan and Bank of America, has drawn the attention of lawmakers, including Sen. Elizabeth Warren (D-Mass.), as well as regulators concerned about consumer protection.
Banks argue that covering the costs of fraud could encourage further fraud, resulting in billions of dollars in losses.
Spokespeople for JPMorgan, Wells Fargo, Bank of America and the CFPB declined to comment.
