The Consumer Financial Protection Bureau announced Friday that it would place Google’s payments division under federal oversight. In response, Google filed a lawsuit to block this move.
This oversight will subject Google to the same scrutiny the bureau conducts for possible violations of the law that it conducts against major banks and other financial institutions. The CFPB recently finalized regulations that include payments and digital wallet services under its jurisdiction.
The CFPB’s announcement acknowledged that Google is contesting the designation. The bureau said that placing the company under its supervision ” ~ no Although it is considered a finding that a company has engaged in illegal activity, it does indicate that the company poses a “risk to consumers.”
In this case, the bureau cited complaints that Google failed to adequately investigate or account for “alleged wrongful transactions” and that the company failed to take reasonable steps to prevent fraud.
This follows previous reports that the CFPB has been negotiating with Google for several months.
Google’s lawsuit claims the CFPB is relying on a small number of unfounded complaints about Google Pay, which was discontinued as a standalone app in the U.S. earlier this year, according to Reuters.
“This is a clear example of government overreach involving Google Pay peer-to-peer payments, which pose no risk and are no longer available in the U.S. We will challenge this in court,” a Google spokesperson said in a statement. revealed.
Regardless of how Google’s lawsuit plays out in court, the CFPB’s decision could be reversed after President Donald Trump’s administration takes office in January.
