By Jonathan Stempel
NEW YORK, July 22 (Reuters) - A judge rejected Zelle's bid to dismiss a lawsuit by New York Attorney General Letitia James, who said the electronic payment platform's refusal to adopt critical safety features enabled fraudsters to steal more than $1 billion from consumers.
In a decision on Tuesday, Justice Phaedra Perry-Bond of a New York state court in Manhattan said James sufficiently alleged that Zelle's parent Early Warning Services "prioritized accessibility, convenience, consumer adoption, and market dominance at the expense of consumer safety" in rushing the platform to market, despite objections from its banking partners.
Early Warning Services is owned by seven large U.S. banks: Bank of America, Capital One, JPMorgan Chase, PNC, Truist, US Bank and Wells Fargo.
Perry-Bond said Zelle also conceded it is still collecting and retaining fees from fraudulent transactions, raising the question of whether it implicitly or expressly approved what the fraudsters were doing.
#bond #early #bank #fraudsters
NEW YORK, July 22 (Reuters) - A judge rejected Zelle's bid to dismiss a lawsuit by New York Attorney General Letitia James, who said the electronic payment platform's refusal to adopt critical safety features enabled fraudsters to steal more than $1 billion from consumers.
In a decision on Tuesday, Justice Phaedra Perry-Bond of a New York state court in Manhattan said James sufficiently alleged that Zelle's parent Early Warning Services "prioritized accessibility, convenience, consumer adoption, and market dominance at the expense of consumer safety" in rushing the platform to market, despite objections from its banking partners.
Early Warning Services is owned by seven large U.S. banks: Bank of America, Capital One, JPMorgan Chase, PNC, Truist, US Bank and Wells Fargo.
Perry-Bond said Zelle also conceded it is still collecting and retaining fees from fraudulent transactions, raising the question of whether it implicitly or expressly approved what the fraudsters were doing.
#bond #early #bank #fraudsters
6 days ago
