On October 29, 2024, Bank of America (BofA) disclosed in a regulatory filing that it is contemplating legal action against the Consumer Financial Protection Bureau (CFPB) concerning an investigation into its handling of transactions via the Zelle payment app. This inquiry has raised questions about BofA's compliance with consumer protection regulations, particularly regarding the safety and transparency of transactions made through Zelle, a peer-to-peer payment network launched in 2017 and owned by seven major banks, including JPMorgan and BofA itself [3613bf45].
The CFPB's scrutiny of Zelle comes amid broader concerns about the security of digital payment systems and the potential for consumer fraud. JPMorgan Chase, another major bank involved with Zelle, is also considering a lawsuit against the CFPB over similar inquiries, indicating a growing tension between major financial institutions and regulatory bodies [3613bf45].
In a related development, on October 23, 2024, the CFPB imposed a total fine of $89 million on Apple and Goldman Sachs for misleading users of the Apple Card regarding automatic enrollment in interest-free payment plans. The CFPB's investigation revealed that Apple failed to forward tens of thousands of customer disputes to Goldman Sachs, leading to significant delays for customers seeking refunds and potential damage to their credit scores. This ruling underscores the CFPB's commitment to enforcing consumer protection laws across the financial services industry [7f0378fd].
Additionally, the CFPB has been actively working to enhance consumer protection, focusing on eliminating deceptive practices and ensuring accountability among financial institutions. Director Rohit Chopra has urged consumers to report disputes with financial institutions to promote transparency and compliance with federal laws [374185e0].