The Consumer Financial Protection Bureau has filed a one-page notice in the United States District Court of Arizona dismissing with prejudice its lawsuit against JPMorgan Chase, Bank of America and Wells Fargo over alleged failures to protect consumers from fraud on the Zelle payments network. A dismissal with prejudice is legally final: the case cannot be refiled and the enforcement action against the three institutions is permanently extinguished.
The CFPB had brought the action against the three banks alongside Early Warning Services, the bank-owned entity that operates Zelle, alleging that they had failed to implement adequate controls to protect customers from fraudulent transfers made through the network.
OTHER CFPB DISMISSALS
In the same period, the CFPB also dropped lawsuits against Capital One, Rocket Homes and TransUnion.
INDUSTRY RESPONSE
Early Warning Services called the lawsuit 'legally and factually flawed', and the Consumer Bankers Association said banks 'have consistently followed the law in offering services through Zelle'.
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