Zelle, its co-owner Bank of America, report payment issues

WASHINGTON — After a day full of social media complaints against Zelle and Bank of America, the bank, which co-owns Zelle with several of its peers, says issues have been resolved, according to media reports. Throughout the day, people posted online that money was missing from their accounts and that Zelle blamed Bank of America.

PIRG’s research arm, the U.S. PIRG Education Fund, exposed the burgeoning problems with peer-to-peer payment apps such as Zelle in its June 2021 report Virtual wallets, real complaints.

In response, Ed Mierzwinski, the senior director of PIRG’s Federal Consumer Program issued the following statement:

“We put money in the bank to supposedly keep it safe. And with seven major banks in charge of the payment app Zelle, we should be able to rely on that as well. Too many people found out today that’s not always the case. PIRG recommends that the CFPB investigate this problem, its cause and the response from both Zelle and Bank of America. 

“It’s certainly not the first time we’ve heard of a problem with payment apps, including Zelle. A U.S. Senate report last fall stated that Zelle was ‘facilitating fraud,’ based on ‘internal data’ from several of the big banks that own it. 

“PIRG does not recommend consumers use any instant payment app, except with known close friends. For the pros and cons of various payment methods, check out our ‘Choosing the best way to pay’ guide.”