NY attorney general sues Zelle’s parent company after Trump administration drops similar case
NEW YORK (AP) — New York’s attorney general on Wednesday sued the parent company of the Zelle payment platform, months after the federal Consumer Financial Protection Bureau abandoned a similar case as the Trump administration was gutting the agency.
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Attorney General Letitia James, a Democrat, sued Early Warning Services in New York state court, alleging that the company, which is owned by a group of U.S. banks, had failed to protect users from fraud by not including critical safety features in Zelle’s design.
The Consumer Financial Protection Bureau earlier this year dropped a similar case after President Donald Trump fired the agency’s leader and his administration halted nearly all the bureau’s work, closed its headquarters and moved to fire many of its workers.
