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 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.”

In December, the federal Consumer Financial Protection Bureau, under the Biden administration, filed a lawsuit against Zelle, JP Morgan Chase, Bank of America, and Wells Fargo, claiming consumers lost more than $870 million because fraud claims weren’t properly investigated.