US consumer watchdog sues banks over alleged ‘widespread’ fraud on Zelle

Lawsuit is part of CFPB’s aggressive agenda in reported bid to advance protections before Trump overhauls agency

The US Consumer Financial Protection Bureau said on Friday it filed a lawsuit against JPMorgan Chase, Bank of America and Wells Fargo for failing to protect consumers from alleged “widespread fraud” on the payments platform Zelle.

The lawsuit was initiated as the watchdog moves ahead with an aggressive agenda in the final weeks of Joe Biden’s Democratic administration in a bid to advance consumer protections before Donald Trump overhauls the agency, said three people familiar with the agency’s thinking. The moves defy congressional Republicans, who have called for agencies to cease rulemaking.