NBC News - Operator of Zelle, three banks, accused of failing to protect consumers from fraud
Zelle, a popular electronic payment service, is facing a federal lawsuit alleging it failed to protect consumers from widespread fraud. The Consumer Protection Bureau claims that customers at JP Morgan Chase, Wells Fargo, and Bank of America have collectively lost $870 million since Zelle's launch seven years ago. The lawsuit accuses Zelle of having inadequate identity verification methods, failing to properly investigate fraud claims, and not providing reimbursements to affected customers. In response, Zelle has dismissed the lawsuit as legally flawed and politically motivated. JP Morgan Chase has also criticized the regulators involved in the lawsuit.
Key Points:
- Zelle is accused of failing to protect consumers from fraud, leading to $870 million in losses.
- The lawsuit involves major banks: JP Morgan Chase, Wells Fargo, and Bank of America.
- Zelle allegedly had poor identity verification and failed to investigate fraud claims.
- The company is also accused of not reimbursing affected customers.
- Zelle and JP Morgan Chase have criticized the lawsuit, calling it politically driven.