The Consumer Financial Protection Bureau has dropped its lawsuit against the company operating the Zelle payment platform and three major U.S. banks, signaling a shift in enforcement actions under the Trump administration. The CFPB had accused JPMorgan Chase, Wells Fargo, and Bank of America of failing to protect consumers against fraud on Zelle. Early Warning Services, the company behind Zelle, was also named in the lawsuit. However, the CFPB has now dismissed the lawsuit against all parties involved, including EWS, Bank of America, JPMorgan Chase, and Wells Fargo.
This move is part of a trend of federal agencies pulling back on enforcement actions initiated during the previous administration. The CFPB recently dropped lawsuits against companies like Capital One and Rocket Homes, signaling a shift in priorities for the agency under new leadership. The SEC has also paused or closed legal action against several cryptocurrency platforms as part of efforts to present a more crypto-friendly stance under Trump’s administration.
Critics of these actions argue that they leave consumers vulnerable to predatory practices, while supporters emphasize the need for oversight to protect consumers from harm. The future direction of regulatory agencies like the CFPB and SEC remains uncertain as the administration continues to make changes to its enforcement priorities.
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