Folder photo: Office of Management and Budget (OMB) Acting director Russell Vought testifies before the Chamber’s Budget Committee on the 2020 budget on Capitol Hill in Washington, United States, March 12, 2019.
YURI GRIPAS | Reuters
The Consumer Financial Protection Bureau on Tuesday rejected his trial against the operator of the Zelle Payments Network and the three American banks who dominate the transactions.
The CFPB continued the early alert services, which manages the network of payments between peers, as well as JPMorgan Chase, America Bank And Wells Fargo In December, alleging that companies have not surveyed correctly in fraud complaints or giving a reimbursement of the victims.
The CFPB “rejects this action against the defendants Early Warning Services, LLC, Bank of America, Na, Jpmorgan Chase Bank, Na, and Wells Fargo Bank, Na, with prejudices,” said the regulator in his file.
Since the acting director Russell Vought took over the CFPB, the agency lost at least half a dozen cases presented by its predecessor, Rohit Chopra. The agency is now involved in a legal battle after a union representing the employees of the CFPB prosecuted to interrupt mass fire and the purge of data which would have taken place under Vought and the Ministry of Elon Musk’s government.
The CFPB said that customers of the three banks have lost more than $ 870 million since Zelle’s launch in 2017. The service has been launched to provide bank customers an alternative to Peer-to-Peer platforms, in particular Paypal. Last year, Zelle crossed $ 1 billion in total volume, which, according to him, was ever ever made for a Peer-to-Peer platform.
Since recent cases were rejected with prejudice, the CFPB has agreed to never bring these claims again, extinguishing the possibility of recovering funds for consumer assistance, said the former head of the Eric Halperin law last week.
A spokesperson for the Zelle brand said that he had greeted the dismissal and reiterated an assertion that the CFPB trial was “legally and factual”.
A JPMorgan spokesperson said that “that” banks play a crucial role in prevention of scam and consumer education …. This is a national security problem that requires collective effort in the public and private sectors “.
“Banks have always followed the law by offering services by Zelle,” said Lindsey Johnson, president of Consumer Bankers Association, in a statement after the dismissal. “At a time when fraud and fraud activities are booming … We are impatient to go beyond fingers and political size and work constructively with political decision -makers to counter the deep causes of these threats.”