STEPHEN MOORE: For Whom The Zelle Tolls: Why Dumping Biden Era Case Against Popular Service Was Correct

One of the more baffling lawsuits in the final days of the Biden administration was the complaint against Zelle – the popular money transfer system. The Consumer Finance Protection Board (CFPB) argued that the service was ripping off consumers. But that was quite a stretch given that Zelle is virtually a free service for customers.  

Now that the Trump administration has all but closed down the CFPB, this is the first of many lingering lawsuits that needed to be tossed. Which, thankfully, the administration did on Tuesday.

In its short inglorious decade-long history, the CFPP harassed businesses with hundreds of millions of dollars of frivolous complaints which enriched trial lawyers, while doing nothing of consequence to actually help consumers. 

If the CFPB had really wanted to “protect” consumers, the agency would have sued the Biden administration for unleashing a 21% four-year inflation with its wild spending spree. But that never happened.  

Why the CFPB and its former director Rohit Chopra wanted to strangle Zelle with red tape and lawsuits remains a mystery. 

Zelle provides a money transfer program mostly run through banks.The users pay next to nothing for the service. Yet the government is looking this gift horse in the mouth.  

The complaint against Zelle is that the service doesn’t do enough to root out internet fraudsters. These are mostly foreign fraud cartels that prey on unsuspecting clients throughout the world.