banks sued over alleged Zelle fraud

The Consumer Financial Protection Bureau sued JPMorgan Chase & Co., Bank of America Corp. and Wells Fargo & Co. along with the parent company of Zelle alleging the firms rushed a peer-to-peer payment network to market without first implementing adequate consumer protections.

“By their failing to put in place proper safeguards, Zelle became a gold mine for fraudsters, while often leaving victims to fend for themselves,” said CFPB Director Rohit Chopra in a statement Friday.

A Zelle spokesperson said the CFPB’s actions are legally and factually flawed and the timing of this lawsuit appears to be driven by political factors unrelated to Zelle.

JPMorgan called the agency’s move “a last ditch effort in pursuit of their political agenda” and said the CFPB is now overreaching its authority by making banks accountable for criminals, according to a spokesperson.

A representative for Bank of America did not have an immediate comment and Wells Fargo declined to comment.

JPMorgan, Wells Fargo and Bank of America are the largest institutions participating in the Zelle network, according to the complaint, accounting for 73% of its activity last year.

Starbucks workers begin strike

Workers at Starbucks stores began a five-day strike Friday to protest lack of progress in contract negotiations with the company.

The strikes by baristas and other workers were scheduled to take place in Los Angeles, Chicago and Seattle and could spread to hundreds of stores across the country by Christmas Eve. Starbucks Workers United, the union organizing Starbucks’ baristas, said at least 10 locations were closed down as of midday Friday.

The walkouts came a day after the Teamsters union announced strikes at seven Amazon delivery hubs.

Starbucks said early Friday there was “no significant impact” to its store operations.

“We are aware of disruption at a small handful of stores, but the overwhelming majority of our U.S. stores remain open and serving customers as normal,” the Seattle-based coffee giant said in a statement.

Workers at 535 company-owned U.S. stores have voted to unionize, but Starbucks has nearly 10,000 company-owned U.S. stores

Tesla recalls nearly 700,000 vehicles

Tesla is recalling almost 700,000 vehicles because of an issue with the warning light on the tire pressure monitoring system.

According to a letter Thursday from the National Highway Traffic Safety Administration, the recall includes certain 2024 Cybertruck, 2017-2025 Model 3, and 2020-2025 Model Y vehicles.

The issue is that the tire pressure monitoring system warning light on the vehicles may not remain illuminated between drive cycles, failing to warn the driver of low tire pressure. Driving with improperly inflated tires can increase the risk of a crash.

The Elon Musk-led automaker said it’s providing a free software update to fix the problem.

Owner notification letters are expected to be mailed on Feb.15. Tesla customer service can be reached at 1-877-798-3752 for more information.

Compiled from The Associated Press and Bloomberg reports.