Business
Consumer agency drops Zelle lawsuit against big banks in latest legal pullback
In the waning days of the Biden administration, the Consumer Financial Protection Bureau filed a series of lawsuits against financial companies it accused of running roughshod over the public.
Now, the agency under a new interim director is rapidly withdrawing those cases and others, with the CFPB most recently filing a motion this week in federal court in Arizona to drop a December lawsuit against payment app Zelle and its big bank backers.
The lawsuit accused the company that operates the app on behalf of a consortium of banks — including defendants Wells Fargo, JP Morgan Chase and Bank of America — of rushing to launch the service to compete with Venmo and other payment apps.
Without adequate consumer safeguards, Zelle users experienced $870 million in fraud-related losses, it alleged.
“We welcome the CFPB’s decision to drop its lawsuit against the Zelle network. As we’ve said before, this lawsuit was without merit, and legally and factually flawed,” said a spokesperson for Early Warning, the Scottsdale, Ariz., company that operates Zelle for the banks.
The CFPB moved to dismiss the case in a brief legal filing and has not issued a statement explaining its decision, but the move is the latest in a series of case dismissals and other actions intended to rein in the agency since Biden appointee Rohit Chopra was fired by President Trump on Feb. 1.
The agency did not respond to a request for comment.
Acting chief Russell Vought — also Trump’s director of the Office of Management and Budget and a leader of the administration’s mission to downsize the federal government — has ordered staff to stop all “supervision and examination activity” and has sought to reduce the agency’s funding, saying in a tweet: “This spigot, long contributing to CFPB’s unaccountability, is now being turned off.”
The CFPB filed a lawsuit in January against Capital One Financial Corp., accusing the financial services company of cheating customers out of $2 billion in interest payments, but the agency dropped the case last month.
The CFPB similarly withdrew a case it had filed against Vanderbilt Mortgage and Finance, a company owned by Warren Buffett’s Berkshire Hathaway, which it had accused of trapping mobile home buyers into unaffordable loans that cost them fees and penalties and even the loss of their homes.
Other lawsuits that have been dropped include cases against student loan servicer Pennsylvania Higher Education Assistance Agency, which was accused of collecting on loans in bankruptcy; Heights Finance, which allegedly engaged in illegal “loan churning” to generate more fees; and Rocket Homes, one of the country’s largest home lenders, which was accused of illegal kickbacks.
When the Rocket Homes case was dropped last month, the lender called the suit “an empty claim brought forth by former CFPB director Chopra for the sole purpose of seeing his name in headlines during the final days in public office.”
Rick Claypool, a researcher at Public Citizen, said it was expected that the Trump administration would seek to pull back from aggressively prosecuting financial companies accused of wrongdoing, but not to such an extent.
“What has happened is that it is played out with somewhat shocking speed and recklessness, with whole categories of corporate enforcement being dropped and paused,” said Claypool, author of a report released Tuesday, which calculated the administration halted or moved to dismiss investigations against 89 corporations across multiple federal agencies.
The consumer group last month joined with other advocacy groups and a federal union in filing a lawsuit against the CFPB and Vought challenging what it calls the “unlawful dismantling” of the agency, which was established by an act of Congress in 2011 after the industry excesses that led to the financial crisis.
During the first Trump administration, the agency issued payday lender rules that consumer groups considered weaker than what the CFPB had proposed under the Obama administration. But it also pursued enforcement actions against banks, including reaching a consent order with Citibank, which agreed to pay $335 million in restitution to customers over allegations it violated the Truth in Lending Act.
Vought is currently running the agency, but Trump has nominated attorney and former Federal Deposit Insurance Corp. Director Jonathan McKernan to be its chief.
During his confirmation hearing last month, McKernan pledged to “implement and enforce the federal consumer financial laws and perform each of [the agency’s] other statutorily assigned functions” — even as Vought has reportedly sought to cancel the lease on the CFPB’s headquarters.
Chopra, in a recent interview, said opposition to the agency stems not only from traditional banking and lending firms but from big Silicon Valley tech companies that want to get into the finance business.
“We know that their tentacles are all over, and many have significant aspirations in banking, lending and payments,” Chopra told Drop Site News, specifically mentioning Google, Apple and Facebook, which attempted to launch its own cryptocurrency, Libra, several years ago.
He also noted that Elon Musk — who in a November post on X said, “Delete CFPB. There are too many duplicative regulatory agencies” — wants to turn the social media site formerly known as Twitter into a payments platform.
“I think it’s reasonable for Americans to wonder why he is targeting this little agency. And I think a lot of the opposition is coming from tech conglomerates, because … the agency has been a speed bump in their plans,” he said.
There has been at least one enforcement that Vought said the CFPB will pursue — a lawsuit against online lender MoneyLion, which was accused by the agency in 2022 of violating the Military Lending Act by overcharging on loans to service members and their dependents. MoneyLion has denied the allegations.
The Associated Press and Bloomberg contributed to this report.
Business
Fire-damaged Pacific Palisades shopping center sets reopening date
The luxury shopping center in Pacific Palisades will reopen next month after more than $100 million in renovations forced by the January 2025 wildfire that devastated the Los Angeles neighborhood.
Palisades Village will reopen Aug. 15, owner Rick Caruso announced Wednesday. The outdoor center survived the blaze that destroyed homes and other businesses but needed refurbishment to eliminate contaminants that the fire could have spread.
Crews are putting finishing touches on mall buildings after tearing them down to the studs, treating the wood and rebuilding the walls, Caruso said.
“Everybody’s working, and stores are moving their products in,” he said. “It’s a really cool feeling that people have really locked arms and are working together.”
An electrician installs lighting for a restaurant at Rick Caruso’s Palisades Village on Thursday. The shopping center is scheduled to reopen mid-August.
(Myung J. Chun / Los Angeles Times)
Pacific Palisades resident Allison Polhill, who is rebuilding the home of 30 years that her family lost in the blaze, said she is “thrilled” at the prospect of returning to the mall she used to frequent. Its comeback is a boost for the community, she said.
“Every single step that we make to reopen our commercial corridors is going to bring more people back into the Palisades,” said Polhill, who expects to move back into her home at the end of August.
A total of 6,822 structures were destroyed in the Palisades fire, including more than 5,500 residences and 100 commercial businesses, according to the California Department of Forestry and Fire Protection.
Caruso previously attributed the mall’s survival to the hard work of private firefighters and the fire-resistant materials used in the mall’s construction.
The $200-million shopping and dining center opened in 2018 with a movie theater and a roster of upmarket tenants, including Erewhon, which may be the only grocer in the heart of the fire-ravaged neighborhood when it opens.
Caruso’s company was able to fill the mall with tenants despite the long shutdown.
Palisades Village is 99% leased, with the majority of tenants returning, said Jackie Levy, chief financial and revenue officer. Nearly one-third of the shops and restaurants are new to the property.
A firefighter carries a hose back to his rig while walking through a destroyed home from the Palisades fire in Pacific Palisades on Jan. 7, 2025.
(Genaro Molina / Los Angeles Times)
Last year, Pacific Palisades-based fashion designer Elyse Walker said she would reopen her eponymous store in Palisades Village after losing her 25-year flagship location on Antioch Street to the inferno.
Other neighborhood shops destroyed in the fire that are reopening at the mall include K Bakery and Loomey’s Toys, which caters to children up to age 12 and used to be across the street from Palisades Elementary Charter School.
“It’s been a journey and I’m excited because I wasn’t sure that there was going to be a place to come back to,” said toy store owner Amanda Rastegar. “Hopefully we can bring some of that magic back.”
Rastegar’s home in the Palisades survived but was damaged by the fire. The family returned about eight weeks ago. Her last memory of the fire was a burning supermarket.
“I just couldn’t wrap my brain around what was happening,” she said. “By the time I left, Gelson’s was on fire.”
Among the returning tenants is Angelini Ristorante & Bar. Well-known Los Angeles chef Gino Angelini said he will be in the kitchen next month for a return of the Italian restaurant.
“We won’t do a big celebrity open,” he said. “We want to have a very soft opening and see our customers come back.”
Construction takes place at Rick Caruso’s Palisades Village on Thursday. The shopping center is scheduled to reopen mid-August.
(Myung J. Chun / Los Angeles Times)
An elaborate celebration would not feel “correct for me,” Angelini said, because the devastation has been “very sad” for so many.
Other new tenants include local chef Nancy Silverton, who has agreed to move in with a new Italian steakhouse called Spacca Tutto. Women’s activewear retailer LESET will open its first West Coast location.
Caruso said he is optimistic that customers will return to the center, even though many Pacific Palisades residents are still dispersed. One tracking system estimated that about 30% of the Village’s customer base was impacted by the fire, he said.
“That means 70% did not get impacted, so there’s a lot of customers still left out there,” Caruso said. Historically, the center drew customers from as far away as Beverly Hills and Calabasas, as well as Malibu, Brentwood and Santa Monica.
He also hopes many will be inspired to visit the revived mall.
“I believe in the goodness of people and I believe that people are going to want to support the Palisades,” he said. “They’re going to want to be there and support the businesses that have had the courage and the heart to reopen.”
Business
Walmart’s EV chargers are coming to California with discounts for members
Walmart is rapidly expanding its network of electric vehicle chargers designed for customers to use while they shop.
The network could help fill gaps in EV infrastructure in states with greater need for chargers. Walmart, which has more than 5,000 locations in the U.S. and hundreds in California, says more than 90% of Americans live within 10 miles of one of its stores.
The chargers also offer an incentive for customers to choose Walmart — Walmart Plus members will receive a 10% discount off an average price of $0.46 per kilowatt-hour of energy at the company’s chargers.
Walmart chargers are already available at more than 75 locations in 17 states, with Texas boasting the most charging stations, followed by Florida and Arizona.
Matthew Nelson, Walmart’s director of energy policy, said last week on LinkedIn that the network will soon reach 29 states, including California.
“We are delivering on the promise of affordable, reliable and convenient charging,” Nelson said in his post.
According to Walmart’s website, six charging stations are coming to California soon, though the company did not offer a specific timeline.
The chargers will be installed at stores in Antelope, Brea, Fresno, Stockton, Suisun City and Vallejo.
Most charging sites in California will include eight to 16 fast-charging stalls, said Walmart spokesperson Kelsey Bohl.
The company first announced plans in April 2023 to install its own EV chargers at Walmart and Sam’s Club stores, with a goal of installing thousands of chargers by 2030. Partnering with ABB E-Mobility and Alpitronic, it added 25 new charging sites this past May and six more in June.
“Walmart is building a leading retail-integrated EV fast-charging network, focused on delivering an affordable, reliable and convenient charging experience where customers already shop,” Bohl said in an emailed statement. “Customers can charge while they shop, access stations through the Walmart app they already use, and benefit from affordable pricing.”
The charging stations already available include 612 individual charging stalls using 400-kilowatt chargers. Each stall has a dual charging cord with both Combined Charging System and North American Charging Standard connectors. The standard connectors, designed by Tesla, are smaller and lighter than the combined systems.
The primary way to pay for the chargers is through the Walmart app, but the company is also experimenting with built-in credit card readers to allow those without the app to use the stations.
Customers can check charger availability on the Walmart app. The company said the chargers will be available 24 hours a day.
Business
Waymo reports teen riders for bad behavior and delivers them to the police
Robotaxis could be turning into robocops.
A self-driving Waymo reported two teens to San Mateo, Calif., police on Monday after they were found drinking alcohol and shooting toy guns in the back of the vehicle.
According to a social media post from the San Mateo Police Department, officers detained two 15-year-olds after the Waymo they were riding in contacted the department and stopped in a parking lot until law enforcement arrived.
“Parents do you know where your teens are?” the San Mateo Police Department wrote on Facebook following the incident. “Waymo does!”
Officers removed both teens from the vehicle and determined they were using toy guns to shoot Orbeez out the windows. Orbeez are small, water-absorbing beads sold at toy stores.
“Toy guns, water guns, and BB guns all pose real dangers, especially to an untrained eye,” the Police Department said. “The simple handling of them can cause fear in [passersby].” “
A video posted on Facebook shows at least five officers and a police dog responding to the scene and approaching the Waymo with their weapons raised.
Waymo did not immediately respond to a request for comment.
Waymo vehicles have internal cameras and microphones that may be used in an emergency or to “promote safety and security,” according to Waymo’s online support page.
The cameras are also used to ensure the vehicles are clean and to help find lost items, according to the support page.
The company said it does not use facial recognition or other biometric identification technologies to identify individuals.
“In more urgent circumstances, support may access live video during a trip,” the Waymo page said.
The San Mateo Police Department’s Facebook post has garnered nearly 60 comments, with one user accusing Waymo of “snitching.”
“At least they got a designated driver?!” one user commented.
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