The Consumer Financial Protection Bureau is suing America's three largest banks, accusing the institutions of failing to protect customers from fraud on Zelle, the payment platform they co-own.
“The nation’s largest banks felt threatened by competing payment apps, so they rushed to put out Zelle,” said CFPB Director Rohit Chopra in a statement.
“The CFPB’s attacks on Zelle are legally and factually flawed, and the timing of this lawsuit appears to be driven by political factors unrelated to Zelle," Jane Khodos, Zelle spokesperson, said in an emailed statement.
"Zelle leads the fight against scams and fraud and has industry-leading reimbursement policies that go above and beyond the law."
"The CFPB is now overreaching its authority by making banks accountable for criminals, even including romance scammers," the bank said.
Persons:
”, Rohit Chopra, Zelle, Jane Khodos, Sen, Richard Blumenthal, Trump
Organizations:
Consumer Financial, JPMorgan, Wells, Bank of America
Locations:
fraudsters, Connecticut