Bank Of America, Wells Fargo And JPMorgan Investigated On Zelle Customer Funds, Scams

Bailey: As if Americans aren't struggling enough, we can't even trust our Banks.

According to a Wall Street Journal piece published on Wednesday, the Consumer Financial Protection Bureau is probing how big U.S. banks have been managing their customers’ money on the peer-to-peer payments network Zelle.

The article, which cited individuals familiar with the situation, stated that the investigation focuses on Wells Fargo, Bank of America, and JPMorgan, among other major institutions.

In a filing last week, JPMorgan stated that it was answering the CFPB’s questions regarding  Zelle and that it was thinking about suing a U.S. consumer advocacy watchdog in response to the agency’s questions.

Additionally, Wells Fargo has already revealed in filings that investigations by regulatory authorities have been looking into how Zelle handles customer disputes.

U.S. lawmakers and regulators worried about consumer safety have taken notice of the spread of fraud and scams on Zelle, which is owned by seven large banks, including JPMorgan and Bank of America.

Banks contend that “covering the cost” of fraud will just serve to incentivize even more fraud, which could end up costing billions of dollars.

Early Warning Services, Zelle’s operator, stated that it has “proactively taken steps to go above the law by leading the industry in scam reimbursement efforts.”

They also highlighted that 99.95% of transactions are completed without any negative reports of fraud.

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