CALIFORNIA: Google challenges the Consumer Financial Protection Bureau’s (CFPB) oversight of its payment division, citing regulatory overreach.
Google has filed a lawsuit against the Consumer Financial Protection Bureau (CFPB), contesting its decision to place Google Payment Corp. under federal supervision. The lawsuit, filed in Washington, DC, argues that the CFPB’s move was based on “unsubstantiated user complaints” and represents a “burdensome form of regulation.” The CFPB’s decision follows concerns over a discontinued Google peer-to-peer payment product that allegedly posed risks to consumers. Google maintains that its payment products never endangered users and are no longer available in the U.S. The lawsuit argues that the Consumer Financial Protection Bureau established an “unreasonably low threshold” for determining consumer risk. Despite the product’s discontinuation, the CFPB argues that it still retains oversight authority.
