The agency had dismissed the case 'with prejudice,' which means victims of fraud won't be able to claim relief. It comes as Trump and DOGE move to dismantle the CFPB.

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 agency 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.”