Google has hit back at the Consumer Finance Protection Bureau’s (CFPB) decision to place the company’s Google Pay platform under its supervisory authority.
The Big Tech giant was already subject to CFPB’s enforcement jurisdiction but has not been subject to its supervisory functions of financial institutions.
The regulator can supervise a range of financial firms to ensure protection with financial protection laws. Its supervision of nonbank entities covers areas like mortgages and payday lending, services to banks and credit unions, and ‘lagger players in particular markets’.
In response, Google has filed a lawsuit against the CFPB, accusing the regulator of government overreach and describing the supervision of its payments operation as ‘burdensome’, as reported by CNN.
The basis for the CFPB’s supervision of Google comes from consumer complaints about the company’ s error resolution and fraud prevention policies. It is important to note that these relate to a peer-to-peer payment product no longer available in the US, and the CFPB has not directly accused Google of any wrongdoing.
“Importantly, the CFPB’s order does not constitute a finding that the entity has engaged in wrongdoing,” the regulator clarified. “The CFPB’s order does not require the CFPB to conduct a supervisory examination.”
Nonetheless, the firm remains committed to countering the CFPB’s supervisory efforts.
Jose Castaneda, a Google spokesperson, said: “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 US, and we are challenging it in court.”
