2023 Fintech and Financing Conference & Expo

Bank CEOs Defend P2P Payments Network Zelle in Senate Hearing Over Consumer Fraud Handling

BankingDive | Anna Hrushka | Sep 23, 2022

Ms Warren at Zelle senate hearing - Bank CEOs Defend P2P Payments Network Zelle in Senate Hearing Over Consumer Fraud HandlingSen. Elizabeth Warren, D-MA, called the peer-to-peer payments network “unsafe,” claiming Zelle users were defrauded out of $500 million last year.

“You have created a perfect weapon for criminals to use and they have used it and you have not stood behind your customers,” she told the witnesses, which included the CEOs of JPMorgan Chase, Bank of America, Wells Fargo, Citi, Truist, PNC and U.S. Bank.

  • Zelle, a network designed to compete with P2P fintechs such as Venmo and Cash App, is owned by six of the seven banks represented at Thursday’s Senate Banking Committee hearing.
  • Senate Democrats on Thursday pressed the CEOs of the nation’s largest retail banks to answer for scams associated with Zelle, a bank-owned peer-to-peer payments network, calling for the institutions to implement policies to protect and redress customers defrauded through the platform.

See:

Asset Managers, Banks Are Tightening Controls of Communication Tools like WhatsApp

Some New Banking Rules Implemented to Protect Consumers in Canada

  • In a joint letter sent to Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra in April, the Democratic lawmakers called on the regulator to expand the definition of “error payments” to include payments a consumer makes to a scam artist.  The lawmakers also called for the CFPB to issue guidance that would place the burden on banks to make consumers defrauded by such transactions whole.
  • JPMorgan CEO Jamie Dimon, who is no stranger to fiery exchanges with Warren, said his bank reimburses customers whose accounts have been hacked, a policy banks follow under Regulation E. Anything that’s unauthorized, we do cover,” Dimon told the senator, adding the amount of fraud on Zelle is “relatively small.”

Continue to the full article --> here

 


NCFA Jan 2018 resize - Bank CEOs Defend P2P Payments Network Zelle in Senate Hearing Over Consumer Fraud HandlingThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Bank CEOs Defend P2P Payments Network Zelle in Senate Hearing Over Consumer Fraud HandlingFF Logo 400 v3 - Bank CEOs Defend P2P Payments Network Zelle in Senate Hearing Over Consumer Fraud Handlingcommunity social impact - Bank CEOs Defend P2P Payments Network Zelle in Senate Hearing Over Consumer Fraud Handling

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - Bank CEOs Defend P2P Payments Network Zelle in Senate Hearing Over Consumer Fraud Handling




 

Leave a Reply

Your email address will not be published. Required fields are marked *

2 + 8 =