On March 5, the U.S. District Court for the District of Arizona received the CFPB’s notice of dismissal with prejudice in a lawsuit against several banks involving alleged widespread digital payment fraud on a popular peer-to-peer payment service created by the banks. The payment service had also been named as a defendant in the lawsuit. The Bureau did not provide any reasoning for the dismissal of the case, initially filed in December 2024, but it alleged consumers suffered more than $870 million in losses due to “systemic fraud” that exploited users of the payment service and that was ignored by the banking defendants (covered by InfoBytes here).

Visit our resource center, CFPB Pause: Where From Here?, to stay on top of the latest and what it may mean for the federal and state regulatory and enforcement landscape.