The Consumer Financial Protection Bureau (CFPB) announced Friday that it has determined that Google Payments Corporation meets legal requirements for oversight and has ordered federal oversight. The CFPB oversees banks, credit unions and other financial institutions, and recently finalized rules governing digital payment apps. In the order, which focuses on the Google Pay app and its peer-to-peer (P2P) payment service (which was discontinued in the United States earlier this year), the CFPB stated that “we have reasonable grounds to believe that Google has engaged in the following conduct: ” he said. poses a risk to consumers. According to Reuters, Google filed a lawsuit challenging the decision shortly after the announcement.
The risks identified by the CFPB are related to Google’s handling of incorrect transactions and fraud prevention. The order said that based on customer complaints, it appears that Google did not properly investigate erroneous transfers or adequately explain its findings regarding these issues. The complaint shows that Google did not take sufficient steps to prevent fraudulent activity, the order said. However, the CFPB said the order “does not constitute a finding that the entity engaged in wrongdoing” nor does it “require the CFPB to conduct a supervisory review.” states.
In a statement to TechCrunch, a Google spokesperson said: “This is a clear case of government overreach involving peer-to-peer payments on Google Pay, which poses no risk in any way and is no longer offered in the United States, which we are challenging in court.” The CFPB’s order acknowledges that Google Pay has been discontinued, but says this “does not constitute a basis for refraining from designating Google for supervision,” but it does not determine whether it decides to conduct an investigation. may have an impact.
