JPMorgan Chase Accused of Refusing To Reimburse Customers, Failing To Terminate Scammer’s Accounts Amid Federal Probe: Report

A federal investigation into banking big JPMorgan Chase is specializing in how the financial institution treats and protects potential fraud victims, in line with a brand new report.

The Client Monetary Safety Bureau (CFPB) is investigating whether or not the financial institution is correctly reimbursing clients and successfully eliminating scammers’ financial institution accounts, CNBC studies, citing sources who requested anonymity whereas talking about an ongoing investigation.

The company’s considerations middle on how the financial institution handles clients who switch cash to Zelle, and investigators are additionally reportedly wanting into related considerations about Wells Fargo and Financial institution of America.

In a current submitting, Chase confirmed that an investigation is underway and mentioned it’s “evaluating subsequent steps, together with litigation.”

The financial institution has declined to remark publicly on the CFPB’s investigation.

The Senate Everlasting Subcommittee on Investigations just lately discovered that Chase, Wells Fargo and BofA reimbursed victims who reported Zelle scams in 2023 38% of the time, down from 62% in 2019.

The subcommittee additionally says the three banks have collectively refused to refund $880 million in disputed Zelle transactions between 2021 and 2023.

The Digital Fund Switch Act explicitly protects individuals who lose cash from unauthorized transfers, however doesn’t present the identical safety when clients are tricked into approving unlawful transactions.

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