X

Senate Banking Committee Chair Brown Presses Zelle to Clarify Fraud Reimbursement Policies

“Since it appears that Zelle has not shared any specific information about its reimbursement policy, customers may not know that they can be reimbursed and, thinking they may not get any help, may not report these scams. Zelle should clarify whether all participating banks and credit unions are required to reimburse customers who are victims of ‘qualifying’ imposter scams and make that policy public[.]”
U.S. Senator Sherrod Brown
“Since it appears that Zelle has not shared any specific information about its reimbursement policy, customers may not know that they can be reimbursed and, thinking they may not get any help, may not report these scams. Zelle should clarify whether all participating banks and credit unions are required to reimburse customers who are victims of ‘qualifying’ imposter scams and make that policy public[.]”
U.S. Senator Sherrod Brown

Senate Banking Committee Chair Sherrod Brown (D-OH) urged Cameron Fowler, the CEO of Zelle, the instant payment platform co-owned by seven "Big Banks," to clarify the firm's policies protecting consumers from scams.

In a letter to Fowler, the Senator demanded that Zelle (i) publicly clarify its reimbursement policy for imposter scams, (ii) reimburse customers that were subject to scams and (iii) streamline the process for consumers to report scams. Senator Brown asked a series of questions about whether Zelle plans to broaden its reimbursement policy and on any efforts to simplify the fraud reporting process. The Senator also asked for (i) data on reported scam claims and refunds issued for such claims, (ii) information on common scam types, (iii) the number of fraud reports received and (iv) the refunds issued based on such reports.

The letter follows a Senate Banking Committee hearing on the growing threat of fraud and scams in the banking system, including on instant payment apps like Zelle. See "Senate Banking Committee Chair Brown Says Stronger Regulation Needed to Address Bank Fraud."

Primary Sources

  1. U.S. Senate: Letter to Mr. Cameron Fowler
  2. U.S. Committee on Banking, Housing, and Urban Affairs: Press Release: Brown, Colleagues Press Zelle to Clarify Policies to Protect Customers from Fraud and Scams

Related Articles

Tags

Individuals
Sherrod Brown
Regulated Activities
Payments
Regulated Entities
Money Service Business / Transmitter
Body of Law
Banking Law
Jurisdiction
US - Federal
Organization
US Congress