JPMorgan Chase handles at least twenty-two percent of Zelle transactions, according to Crone Consulting LLC, which estimates that the bank processes over $2 billion in roughly 27 million transactions between as many as 54 million unique users per day.
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WASHINGTON — JPMorgan Chase said in a regulatory filing that it has received inquiries from the Consumer Financial Protection Bureau over fraud on the peer-to-peer payments platform Zelle, and that it might fight any ensuing enforcement action in court.
The CFPB is also looking into Zelle, according to the JPMorgan filing, which came in its quarterly report filed with the Securities and Exchange Commission on Friday evening. JPMorgan — alongside a number of other large banks, including Wells Fargo and Bank of America — co-owns Early Warning Services, the parent company of Zelle.
JPMorgan said that it is "responding to inquiries" regarding fund transfers on Zelle.
CFPB staff, the bank said, told JPMorgan that it has the authority to file an enforcement action on the subject.
"The firm is evaluating next steps, including litigation," JPMorgan said in the filing.
In a statement to American Banker, JPMorgan said that, "if necessary, we will not hesitate to seek assistance from courts to uphold the integrity of how these services are provided."
"The CFPB is fully aware we already go above and beyond what the law requires, reimbursing for all unauthorized transactions and even for certain types of scams, so they should expect to be challenged to ensure their actions stay within the bounds of the law," the bank said.
The Charlotte-based megabank announced that it had appointed two business leaders to be co-presidents of the bank, and elevated its chief financial officer to serve as executive vice president.
The Massachusetts bank is being accused of aiding and abetting the operation of a Ponzi scheme centered in Hamilton, New York. The bank declined to comment on the allegations.
City National Bank promotes Brandon Williams to head private banking and wealth management; a former U.S. Postal Service letter carrier is sentenced to five and a half years for stealing over $10 million in checks from the mail; Lazard expands its North American investment banking franchise with two managing director hires; and more in this week's banking news roundup.
The government-powered network is allowing larger payments to settle instantly, a move The Clearing House has also made for its RTP network. Payment experts say more than higher limits are needed to make speedy processing ubiquitous.
The world's largest stablecoin issuer is preparing to launch USAT, its U.S.-regulated, dollar-backed stablecoin, by the end of the year, Tether CEO Paolo Ardoino told reporters at an event in New York. Bo Hines was also named CEO of USAT.
