By Brooke Mallory, OAN Staff
Thursday, August 8, 2024 6:22 PM
be The Wall Street Journal The Consumer Financial Protection Bureau is investigating how major US banks have managed customer funds on the peer-to-peer payments network Zelle, according to a report published Wednesday.
advertisement
The article, citing people familiar with the matter, said major financial institutions including Wells Fargo, Bank of America and JPMorgan are at the focus of the investigation.
In a filing last week, JPMorgan responded to the CFPB’s questions about Zelle, saying it was considering suing the U.S. consumer protection watchdog in response to the agency’s inquiries.
Additionally, Wells Fargo has already disclosed in filings that it is facing a regulatory investigation into how Zelle handles customer disputes.
Concerned about consumer safety, U.S. lawmakers and regulators have focused on widespread fraud and deception at Zelle, which is owned by seven major banks including JPMorgan and Bank of America.
Banks argue that “bearing the costs” of fraud would only encourage more fraud, which could ultimately cost them billions of dollars in losses.
Early Warning Services, the company that operates Zelle, said in a statement that it has “proactively taken steps to go above and beyond the law by leading the industry in fraud refund efforts.”
He also highlighted that 99.95% of transactions are completed without any negative reports of fraud.
Stay up to date! Receive the latest news directly in your email for free. Sign up here: https://www.oann.com/alerts
Advertisement below
Please share this post!
