Regulator Drops Fraud Lawsuit Against Zelle’s Parent Company, Relieving Major Banks Of Resolving Fraud Claims

The Consumer Financial Protection Bureau dismissed its lawsuit against Zelle operator Early Warning Services and the three banks that run transactions on it. The agency had accused JPMorgan Chase, Bank of America, and Wells Fargo of failing to investigate fraud complaints or reimburse victims. The case was dismissed with prejudice, which prevents the CFPB from reopening claims or recovering funds for consumer relief. The move comes amid a legal battle over mass firings and data purging at the agency.