The Consumer Financial Protection Bureau (CFPB) on Friday announced that it has ordered federal supervision of Google Fi Corporation. After verifying that it satisfies the required criteria for supervision. The Consumer Financial Protection Bureau (CFPB) scrutinizes banks, credit unions, and other financial institutions, having recently concluded a regulation to govern digital payment applications. Within the context of Google Pay’s peer-to-peer (P2P) fee service, the Consumer Financial Protection Bureau (CFPB) expressed concerns about an “affordable trigger” to uncover that Google has engaged in conduct posing risks to consumers.
The Consumer Financial Protection Bureau has identified concerns surrounding Google’s handling of incorrect transactions and its approach to preventing fraud. Despite numerous customer complaints, it appears that Google failed to thoroughly investigate and resolve issues related to inaccurate transactions, leaving ambiguity surrounding the outcome of its probes into these matters. The lawsuits also accuse Google of failing to take adequate measures to prevent fraudulent activities. The Consumer Financial Protection Bureau’s (CFPB) statement emphasizes that the order does not imply any findings of improper behavior by the entity, and it also does not mandate a supervisory examination by the bureau.
A Google spokesperson stated, “This is a textbook case of overreach by the presidency, as it pertains to peer-to-peer funds through Google Pay, which posed no risks and was based in the U.S. We will be vigorously defending our position in court.” The CFPB’s order notes that Google Pay has been discontinued but maintains that this fact “does not preclude us from designating Google for supervision,” although it may influence whether an examination is conducted.
