T he Consumer Financial Protection Bureau (CFPB) has dismissed its lawsuit against Early Warning Services, the operator of the Zelle payments network, and three major U.S. banks:

The CFPB has dropped a lawsuit accusing Zelle and its bank backers of failing to clamp down on fraud. It's Trump administration's latest move to drop enforcement actions.

A spokeswoman for the payment app’s parent company said the lawsuit against three large banks was “without merit, and legally and factually flawed.”

In December, the federal Consumer Financial Protection Bureau, under the Biden administration, filed a lawsuit against Zelle, JP Morgan Chase, Bank of America, and Wells Fargo, claiming consumers lost more than $870 million because fraud claims weren’t properly investigated.

The decision to drop the case comes as the CFPB, now led by White House budget director Russell Vought, has dropped multiple enforcement actions and faces internal upheaval over mass firings.

The Consumer Financial Protection Bureau dropped its case Tuesday against the peer-to-peer payment network along with Charlotte-based Bank of America and Wells Fargo, which has its largest employment hub in the city. JPMorgan Chase was also named in the lawsuit filed in December.

Big banks are no longer facing a CFPB lawsuit over Zelle fraud claims after the agency dropped its case against JPMorgan, BofA and Wells Fargo.

The Consumer Financial Protection Bureau has dismissed its lawsuit against Zelle's operator and its owner banks.