The Consumer Financial Protection Bureau on Tuesday dropped its lawsuit against several big banks for failing to safeguard the Zelle payments network from fraud.
During the waning days of the Biden administration in late December, the CFPB, then led by Rohit Chopra, filed a lawsuit against Zelle operator Early Warning Services as well as Bank of America (BAC), JPMorgan Chase (JPM), and Wells Fargo (WFC). The agency alleged the defendants had allowed “fraud to fester on Zelle.”
However, the new Trump administration has all but shut down the CFPB recently, closing its headquarters and telling its staff not to work. Under Acting Director Russell Vought, the CFPB has dropped several cases brought by Chopra, including cases against Capital One Financial (COF), Berkshire Hathaway (BRK.A, BRK.B)-owned Vanderbilt Mortgage & Finance, and Rocket Cos. (RKT) unit Rocket Homes Real Estate.
On Tuesday, the CFPB wrote in a filing with the U.S. District Court in Arizona that it “dismisses this action against Defendants Early Warning Services, LLC, Bank of America, N.A., JPMorgan Chase Bank, N.A., and Wells Fargo Bank, N.A., with prejudice.”
Bank of America, JPMorgan Chase, and Wells Fargo did not immediately respond to requests for comment.
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