The Consumer Financial Protection Bureau (CFPB) dismissed its lawsuit against JPMorgan Chase, Bank of America, and Wells Fargo over Zelle fraud.
The CFPB had accused them of failing to properly investigate fraud claims and reimburse victims, claiming the banks’ customers lost over $870 million since Zelle’s launch in 2017.
The case was dropped “with prejudice,” which means it cannot be revived.
The lawsuit’s withdrawal follows a leadership shakeup at the CFPB. Last month, President Donald Trump fired the agency’s director, Rohit Chopra, who was appointed by former president Joe Biden in 2021. Russell Vought serves as the acting director.
The agency has recently dismissed over a dozen cases, including those against Capital One, Rocket Homes, and Vanderbilt Mortgage and Finance, owned by Warren Buffett’s Berkshire Hathaway.
Zelle was launched as a bank-backed alternative to PayPal. It recently reported processing over $1 trillion in transactions in 2024.