The Consumer Financial Protection Bureau on Friday sued Early Warning Services, and three of its bank owners, over fraud on the Zelle payments service.
The federal agency said in a press release that the companies behind Zelle rushed the payments service to market because they were desperate to compete with emerging digital rivals like Block’s Cash App and PayPal’s Venmo services. But now, consumers have lost $870 million over Zelle’s seven-year existence, the CFPB alleged in the lawsuit it filed.
This is a developing story. Check our Payments Dive website for updates.
