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 Consumer Financial Protection Bureau is dropping its lawsuit against the company that runs the Zelle payment platform and three U.S. banks as federal agencies continue to pull back on previous enforcement actions now that President Donald Trump is back in office.

A spokeswoman for the payment app’s parent company said the lawsuit against three large banks was “without merit, and legally and factually flawed.”