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.

The U.S. Consumer Financial Protection Bureau told a federal court on Tuesday it was dropping a lawsuit filed in December against three of the nation's largest banks over their handling of the payment service Zelle,

The Consumer Financial Protection Bureau (CFPB) dropped its suit against JPMorgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC) on Tuesday over their handling of fraud on the peer-to-peer payments network Zelle.

The Consumer Financial Protection Bureau dismissed on Tuesday its lawsuit against the the Zelle payment network and three of the banks that control it, JPMorgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC),

A spokeswoman for the payment app’s parent company said the lawsuit against three large banks was “without merit, and legally and factually flawed.”

The CFPB, which enforces regulations against the financial services industry, had claimed in its December 2024 lawsuit that the organizations had not effectively protected Zelle users “from widespread fraud,” causing customers of Bank of America, JPMorgan Chase, and Wells Fargo to lose a combined $870 million since Zelle launched in 2017.

The case was dismissed "with prejudice," meaning it cannot be brought again, the Consumer Financial Protection Bureau said in a filing.

The CFPB has now dropped seven of the enforcement cases brought under former President Joe Biden, including one against Capital One.

The Consumer Financial Protection Bureau late Tuesday dropped its lawsuit against Early Warning Services LLC, operator of the Zelle person-to-person payments network. The suit had also named Bank of America, JPMorgan Chase, and Wells Fargo as defendants. The financial institutions are three of the seven bank owners of Early Warning.

The Consumer Financial Protection Bureau on Tuesday dismissed its lawsuit against the operator of the Zelle payments network and the three ... which runs the peer-to-peer payments network, as well as JPMorgan Chase, Bank of America and Wells Fargo ...

CFPB dropped lawsuit against JPMorgan Chase, Wells Fargo, and Bank of America for alleged failure to prevent fraud on Zelle. Trump administration ended several consumer protection cases.

The Consumer Financial Protection Bureau on Tuesday dropped its lawsuit against Early Warning Services and several big banks for failing to safeguard the Zelle payments network from fraud.