Company Directory - Zelle
Company Details - Zelle
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Zelle
Zelle is a digital payment platform that allows users to send and receive money electronically, enabling fast and secure transactions directly between bank accounts. It is often integrated into banking apps, making it convenient to transfer funds to friends and family.
CCI Score
CCI Score: Zelle
-38.48
0.02%
Latest Event
CFPB Sues Zelle Over Fraud Safeguard Failures
The CFPB filed a lawsuit alleging that Zelle failed to implement proper fraud prevention safeguards, resulting in over $870 million in consumer losses over seven years. Zelle has dismissed the allegations as meritless and politically motivated.
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TOADIE
Zelle is currently rated as a Toadie.
Latest Events
- DEC202024
The CFPB filed a lawsuit alleging that Zelle failed to implement proper fraud prevention safeguards, resulting in over $870 million in consumer losses over seven years. Zelle has dismissed the allegations as meritless and politically motivated.
-70
Business Practices and Ethical Responsibility
April 1
The lawsuit by the CFPB highlights Zelle's alleged negligence in implementing adequate fraud prevention measures, which endangered consumers and led to significant financial harm. This failure to protect consumers underlines a serious lapse in ethical business practices and responsibility, marking a negative action from an anti-fascist perspective that prioritizes consumer protection and accountability.
CFPB alleges 3 banks failed to protect consumers from Zelle fraud : NPR
- DEC202024
A federal lawsuit by the Consumer Financial Protection Bureau alleges that major banks and Early Warning Services, the operator behind Zelle, failed to implement robust fraud prevention measures. The complaint claims that for years, insufficient safeguards left hundreds of thousands of consumers exposed to fraud on the widely used payment network.
-40
Business Practices and Ethical Responsibility
April 1
The CFPB complaint indicates that Zelle’s operating partner, along with its banking affiliates, neglected to enforce adequate consumer protections against fraud over a prolonged period. This omission undermines ethical business practices and consumer trust.
Federal regulator sues JPMorgan, Wells Fargo and BofA over Zelle fraud
-20
Technology and Services Impact
April 1
The rapid deployment of the Zelle platform without implementing sufficient fraud prevention technologies played a role in widespread consumer exposure to fraud. This shortfall in technological safeguards negatively impacts consumer financial safety.
Federal regulator sues JPMorgan, Wells Fargo and BofA over Zelle fraud
- DEC202024
The CFPB filed a lawsuit against Early Warning Services, the operator of Zelle, alleging that the company, in a rush to compete with other payment apps, failed to implement adequate fraud prevention and detection safeguards. This negligence has allegedly led to over $870 million in consumer losses due to rampant fraud.
-70
Business Practices and Ethical Responsibility
April 1
Zelle's operator prioritized quick market entry over robust consumer protection by neglecting the implementation of essential fraud prevention safeguards. This business decision has directly contributed to significant consumer harm and financial losses, reflecting unethical business practices.
CFPB Sues JPMorgan Chase, Bank of America, and Wells Fargo for Allowing Fraud to Fester on Zelle
-50
Technology and Services Impact
April 1
Zelle’s digital payment platform features, including limited identity verification methods, created vulnerabilities that fraudsters exploited to reroute funds. This design flaw undermines consumer trust and safety, reflecting a negative impact in the realm of technology and services.
CFPB Sues JPMorgan Chase, Bank of America, and Wells Fargo for Allowing Fraud to Fester on Zelle
- DEC202024
A federal lawsuit filed by the Consumer Financial Protection Bureau alleges that banks associated with the Zelle network, including Early Warning Services, rushed the platform’s launch without adequate fraud prevention measures, leaving hundreds of thousands of consumers exposed to fraud over several years.
-50
Business Practices and Ethical Responsibility
April 1
The federal complaint highlights that Zelle’s network was launched without robust safeguards against fraud, a failure that undermines ethical business practices and consumer protection. This neglect reflects poorly on the company’s commitment to responsible practices.
JPMorgan, Wells Fargo, BofA facing federal lawsuit over Zelle payment network fraud
-20
Public and Political Behavior
April 1
The regulatory action by the CFPB and the ensuing lawsuit underscore a lack of effective public accountability and political engagement in ensuring consumer protection. Such oversight failures damage public trust and demonstrate a disregard for the responsibility Zelle has in safeguarding its users.
JPMorgan, Wells Fargo, BofA facing federal lawsuit over Zelle payment network fraud
- DEC012024
In December 2024, the CFPB filed a lawsuit against Zelle’s operator, alleging widespread fraud and consumer harm due to inadequate fraud prevention safeguards. Although the lawsuit was later dropped, the incident underscores ongoing concerns about deceptive business practices and ethical responsibility in protecting customers.
-80
Business Practices and Ethical Responsibility
April 1
The lawsuit and accompanying allegations reveal that Zelle’s operator, along with associated banks, failed to implement robust fraud prevention measures, leading to significant consumer financial harm. This raises serious ethical questions about the company’s business practices and commitment to consumer protection, warranting a strongly negative rating in the area of Business Practices and Ethical Responsibility.
- MAR062023
Senators, including Sen. Jack Reed and Elizabeth Warren, have urged federal regulators to closely supervise customer reimbursement and anti‐money laundering practices of financial institutions using the Zelle network, citing widespread fraud and shortcomings in consumer protection.
-50
Public and Political Behavior
April 1
The senators’ call to action implies that Zelle’s operational model may indirectly facilitate consumer harm by allowing banks to evade full accountability for fraudulent transactions, reflecting poorly on its public and political responsibility.
-45
Business Practices and Ethical Responsibility
April 1
The highlighted deficiencies in customer reimbursement and fraud prevention practices suggest a lapse in ethical business conduct by Zelle’s operating model, undermining consumer trust and exposing customers to financial risks.
- JUN302022
Under pressure from US lawmakers and the federal consumer watchdog, several banks using Zelle began refunding funds to victims of imposter scams as of June 30, marking a significant shift in policy aimed at enhancing consumer protection.
+40
Public and Political Behavior
April 1
The refund initiative comes in response to pressure from US regulators and lawmakers, demonstrating that Zelle is aligning its practices with public accountability and consumer rights, which is a positive step in promoting ethical political behavior.
Payments app Zelle begins refunds for imposter scams after Washington pressure
+50
Business Practices and Ethical Responsibility
April 1
By implementing a refund policy for imposter scam victims, Zelle is taking corrective action to address consumer protection issues. This move, even if prompted by regulatory pressure, reflects a commitment to ethical business practices.
Payments app Zelle begins refunds for imposter scams after Washington pressure
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