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.
Adobe Stock
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.
Claire Williams covers banking policy matters on Capitol Hill. She previously wrote about financial and economic policy for Morning Consult and... Read full bio
The Village Bank is already mulling expanding the concept to other locations if the one planned for its Wellesley, Mass., office lives up to expectations.
The payments fintech is hoping its listing on the Nasdaq will bring it greater visibility in the U.S. market, a region that the company says represents the largest growth potential.
Market watchers say that the economy as a whole is holding up under higher energy prices and do not expect a recession. Even so, observers are watching financial markets and consumer spending for signs that inflation expectations are taking hold.
NASAA's proposal would align state laws with the SEC's marketing rule, eliminating concerns advisors have about running afoul of more local laws as they accept testimonials and reviews.
Three senior officials say attackers will eventually breach bank defenses, and supervisors should plan for it — while U.S. regulators stay nearly silent.
Banks continue to push back on what they describe as insufficient protections against stablecoin yield as the Senate Banking Committee is poised to mark up its long-awaited crypto market structure bill this week.
