The Consumer Financial Protection Bureau (CFPB) has announced it has placed Google Payment Corp. under federal supervision, reports Reuters.
In turn, Google has filed a lawsuit to block the CFPB’s order, which would impose routine inspections and monitoring akin to those faced by banks and other financial institutions.
The CFPB recently gained jurisdiction of payments and digital wallet services. It announced its actions against Google on Friday.
The move by the CFPB came after it claimed Google’s error resolution and fraud prevention processes pose risks to consumers. Specifically, the agency cited complaints about Google Pay Balance and Google’s peer-to-peer payments. It contends Google’s investigations into fraudulent charges fell short.
The CFPB said the action is no indication of wrongdoing on Google’s part, and that Google disputes its action.
“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,” said a statement provided to TheWrap from José Castañeda, a Google spokesperson.
Source link
