CFPB Drops Zelle Fraud Lawsuit Against JPMorgan, Bank of America, and Wells Fargo, Protecting Hundreds of Thousands

The Consumer Financial Protection Bureau (CFPB) has officially dropped its lawsuit against major banking institutions, including JPMorgan Chase, Bank of America, and Wells Fargo, regarding allegations of inadequate consumer protection against fraud on the Zelle payment platform. The lawsuit accused these banks of failing to safeguard hundreds of thousands of consumers from widespread fraudulent activities associated with Zelle. The decision to dismiss the case marks a significant retreat for the CFPB under the leadership of Russ Vought, who has been recognized for this pro-consumer move. This legal withdrawal reflects a broader trend of the agency's recent legal pullbacks.