The Consumer Financial Protection Bureau has filed a lawsuit against the Scottsdale-based company that operates money transfer service Zelle. The company is accused of failing to protect consumers from widespread fraud.
Early Warning Services, which owns and operates the Zelle network, is being sued, along with Bank of America, JP Morgan Chase and Wells Fargo.
According to the lawsuit, the defendants violated federal law by allowing scammers to exploit consumers and ignoring ways to prevent fraud.
Bureau Director Rohit Chopra says “countless American families have fallen victim to fraud on Zelle.”
The bureau says an investigation launched in 2021 found that the companies did not implement adequate protections for customers.
In a statement, Zelle said the lawsuit is “legally and factually flawed” and that the timing “appears to be driven by political factors unrelated to Zelle.”
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