The Consumer Financial Protection Bureau is dropping its lawsuit against the company that runs the Zelle payment platform and three U.S. banks as federal agencies continue to pull back on previous enforcement actions now that President Donald Trump is back in office.
In December a federal regulator sued JPMorgan Chase, Wells Fargo and Bank of America, claiming the banks failed to protect hundreds of thousands of consumers from rampant fraud on Zelle, in violation of consumer financial laws.
In the federal civil complaint, the CFPB asserted that the banks rushed to get the peer-to-peer payments platform to market without effective safeguards against fraud and then, after consumers complained about being defrauded on the service, largely denied them relief.
Guess it might be time to disable zelle on my bank. I’ve used it I think twice with people I know but I guess we’re left to take our protection into our own hands by just not being willing to use a flawed system with not enough safeguards.
When my dad had his bank account drained by Zelle twice, he specifically asked them to turn it off and they COULDN’T, so he changed banks. They did at least make him whole first.
How did they drain his account?
I’m not fully sure, the way he described what happened to me made it sound like malware had gotten installed in his Android device, he lost all connection on the phone and money was moved out of his bank account via Zelle to someone in Florida claiming to be a relative.
I was able to go into the mobile app of my bank and unenroll my email (only thing enrolled). Hopefully that did it. When I go to “Zelle” now it asks me to sign up.
CashApp is 1000x times better than all the others anyway
How do you figure? Do people really prefer to wait a couple business days to receive their money vs instantly?
Its the most widely used and also very reliable.
Although, many whom i know that use it also use their debt card so they don’t generally wait to transfer it.
Personally I never had anyone suggest cash app over Venmo. Maybe amongst zoomers, but Venmo (PayPal) is by far #1, followed distantly by Zelle, and maybe some people I exchange funds with have heard of cash app.
I usually get asked about Venmo yeah, which I always found odd because CashApp has more users by volume.
(And the Venmo app is terrible)