The Consumer Financial Protection Bureau has dismissed its lawsuit over the peer-to-peer payment system Zelle, marking the latest in a series of dismissals from this department under President Donald Trump’s administration. The agency had recently announced the suit – filed against Zelle’s operating entity Early Warning Services and partner banks JPMorgan Chase, Bank of America, and Wells Fargo. According to the initial action, the CFPB stated that customers of the three banks had lost over $870 million during the seven years Zelle has been active.
Under its previous director, Rohit Chopra, the CFPB had taken several steps to regulate the financial products offered by tech companies. However, the agency is currently overseen by Acting Director Russell Vought, who instructed the CFPB to halt all «supervision and examination activity» last month. Despite efforts by bureau employees to sustain the CFPB, there has been uncertainty from government leadership regarding the agency’s status.
Since assuming office, Trump and his ally Elon Musk have implemented extensive measures to control and shut down federal government departments. Agencies that have historically overseen Musk’s business activities have seen a reduction in powers, as have federal operations for various sectors.
This article originally appeared on Engadget at [insert link here].
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