The Consumer Financial Protection Bureau (CFPB) is seeking to place Google under federal supervision, a move that could impose the same type of monitoring and inspections used on banks. Washington Post information.
The CFPB's concerns are not entirely clear and the order may still change, according to the Mailciting two anonymous sources. Both the agency and Google declined to comment on the report. But a lot could change once President-elect Donald Trump takes office in January and makes his own pick to lead the agency.
The CFPB was created in the wake of the 2008 financial crisis to protect consumers from unfair practices by financial institutions. Although it already inspects more traditional financial companies, such as banks, CFPB Director Rohit Chopra has <a target="_blank" href="https://www.consumerfinance.gov/about-us/newsroom/cfpb-proposes-new-federal-oversight-of-big-tech-companies-and-other-providers-of-digital-wallets-and-payment-apps/”>sought to expand the agency's activities to cover digital payment providers. The technology industry has argued in comments that this would be an overly broad use of the agency's authority. “There is no legal basis for this action, so Chopra is trying to invent one out of thin air, all while the clock is ticking on her leadership,” Adam Kovacevich, chief executive of the Google-backed industry group Chamber of Progress, said in a statement on the reported movement.
While we don't yet know what product the CFPB is focusing on, Google offers a digital wallet to store users' credit cards and make payments with their phones. The CFPB has received hundreds of customer complaints about Google services in recent years about unauthorized charges, according to the Mail.
Still, the financial industry appears to expect a significant reduction in the CFPB's more aggressive oversight measures once the incoming Trump administration takes office. according Reuters. Republicans have long expressed skepticism about the agency and Chopra's authority to expand its reach. The reported measure against Google could be forgotten in the transition unless it is implemented before Inauguration Day.
