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.
Sen. Mike Rounds, Rep. French Hill and former FDIC Chair Jelena McWilliams were among the speakers Tuesday at the American Fintech Council's Policy Summit.
In a congressional hearing, top officials from the Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency said no new rules will be adopted or proposed this year.
The payment company is using its Xoom transfer app to bring PYUSD to a broader market; while Barclays is reportedly in talks with Brookfield Asset Management to sell a portion of its payments business. That and more in our global payments news roundup.
