The Consumer Financial Protection Bureau is investigating major US banks for their handling of customer funds on the peer-to-peer payments platform Zelle Network, the Wall Street Journal reported Wednesday.
The probe focuses on JPMorgan, Bank of America and Wells Fargo among other large banks, the report said, citing people familiar with the matter.
The probe focuses on JPMorgan, Bank of America and Wells Fargo among other large banks, the report said, citing people familiar with the matter. AFP/Getty Images
JPMorgan last week had disclosed in a filing that it was responding to the CFPB’s inquiries regarding Zelle and was considering whether to sue a US consumer watchdog over the agency’s inquiries.
Wells Fargo also has previously disclosed in public filings that government authorities have been probing the handling of customer disputes via Zelle.
The proliferation of fraud and scams on Zelle, which is owned by seven major banks including JPMorgan and Bank of America, has drawn attention from lawmakers including Democratic Sen. Elizabeth Warren and regulators concerned about consumer protection.
Banks have argued that covering the cost of scams will encourage more fraud and potentially cost billions of dollars.
The proliferation of fraud and scams on Zelle has drawn attention from lawmakers including Democratic Sen. Elizabeth Warren. AP
Spokespeople for JPMorgan, Wells Fargo, BofA and the CFPB declined to comment.
