From PC Mag: The Consumer Financial Protection Bureau has dropped its lawsuit against Early Warning Services, the company that runs peer-to-peer payment platform Zelle, CNBC reports.
The lawsuit was brought in December, after the CFPB found that Zelle had failed to implement effective safeguards against fraudulent activities, resulting in a combined loss of more than $870 million for customers of Bank of America, JPMorgan Chase, and Wells Fargo. These three banks are among the seven that co-own Zelle's parent company.
The lawsuit also claimed that Zelle had "largely denied assistance" to its affected customers and failed to provide them with "legally required reimbursement." The CFPB demanded an end to these unlawful practices, along with monetary relief for the victims and other remedies.
However, in its Tuesday filing, the independent US agency reversed its course and dismissed the case "with prejudice." That means customers won't be able to claim reliefs, and the agency won't be able to press the same charges again, former head of enforcement Eric Halperin tells CNBC.
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