Bank of America, Wells Fargo are under investigation for handling of customers funds on Zelle
(Reuters) - The Consumer Financial Protection Bureau is investigating major U.S. banks for their handling of customer funds on the peer-to-peer payments platform Zelle Network, the Wall Street Journal reported on Wednesday.
The probe focuses on JPMorgan (JPM.N), opens new tab, Bank of America (BAC.N), opens new tab and Wells Fargo (WFC.N), opens new tab among other large banks, the report said, citing people familiar with the matter.
JPMorgan last week had disclosed in a filing that it was responding to the CFPB's inquiries regarding Zelle and was considering whether to sue a U.S. consumer watchdog over the agency's inquiries.
Wells Fargo also has previously disclosed in public filings that government authorities have been probing the handling of customer disputes via Zelle.
The proliferation of fraud and scams on Zelle, which is owned by seven major banks including JPMorgan and Bank of America, has drawn attention from U.S. lawmakers including Democratic Senator Elizabeth Warren and regulators concerned about consumer protection.
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Banks have argued that covering the cost of scams will encourage more fraud and potentially cost billions of dollars.
Spokespeople for JPMorgan, Wells Fargo, BofA and the CFPB declined to comment.