The Consumer Federal Protection Bureau (CFPB) has filed a lawsuit against three massive banks and the operators of Zelle, Early Warning Services, for failing to protect Americans from fraud on the Zelle network. The suit alleges that three of the banks that own Zelle – Chase Bank, Bank of America, and Wells Fargo Bank – did not implement proper safeguards against payment fraud on the app and also failed to adequately investigate complaints of fraud or assist customers in recovering their money. The banks even told consumers they should contact the fraudsters (i.e., the criminals) directly to get their money returned.
In all, the lawsuit identifies $870 million in losses on the Zelle network over a 7-year period.
Old Glory Bank made a decision not to participate in the Zelle network from the beginning for this very reason. As we set out to create a bank that protects your Privacy, Security, and Liberty, we knew that participating in Zelle would inhibit our ability to protect all three.
Zelle is operated by Early Warning Services, LLC, a company co-owned by America’s seven largest banks: Chase, Bank of America, Wells Fargo, PNC, Capital One, Truist, and US Bank. Old Glory Bank is simply unwilling to play in that sandbox.
Instead, we created Old Glory Pay, our own closed-loop peer-to-peer payment app. With Old Glory Pay, you have Old Glory Bank’s promise that we will never cancel you for exercising your constitutional rights. Whether it’s a donation to a candidate you support, a purchase of a hunting rifle at a sporting goods store, or simply a payment to your neighbor’s kid for mowing the lawn, Old Glory Pay ensures that your payment will go where you intend within minutes, without any third-party getting in the way because they don’t like how you spend your money.