Google Takes Legal Action Against CFPB Over Payment Arm Oversight
Hey FinTech Fanatic!
Google has filed a lawsuit against the Consumer Financial Protection Bureau (CFPB) in Washington, DC, contesting the agency's decision to supervise Google Pay.
The legal action follows the CFPB's recent announcement to bring large nonbank companies offering digital funds transfer and payment wallet applications under its supervisory purview.
José Castañeda, Google spokesperson, stated: "This is a clear case of government overreach involving Google Pay peer-to-peer payments, which never raised risks and is no longer provided in the U.S., and we are challenging it in court."
The company's lawsuit describes the CFPB's supervision as "a burdensome form of regulation," rooted in "a small number of unsubstantiated user complaints."
The CFPB has clarified that while Google Payment Corp is under its enforcement jurisdiction, its order "does not constitute a finding that the entity has engaged in wrongdoing." This supervisory notice marks the second of its kind to be publicly released by the CFPB since its 2022 declaration to examine nonbank financial companies.
What are your thoughts on the supervision of nonbank financial companies? Share your perspective in the comments!
Read more global FinTech industry updates below 👇 and I'll be back tomorrow!
Cheers,
FEATURED NEWS
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