CFPB expands oversight of digital payments services including Apple Pay, Cash App, PayPal and Zelle

[BumRushDaShow]

Source: CNBC

Published Thu, Nov 21 2024 8:58 AM EST Updated 55 Min Ago


The Consumer Financial Protection Bureau on Thursday issued a finalized version of a rule saying it will soon supervise nonbank firms that offer financial services likes payments and wallet apps.

Tech giants and payments firms that handle at least 50 million transactions annually will fall under the review, which is meant to ensure the newer entrants adhere to the laws that banks and credit unions abide by, the CFPB said in a release. The CFPB said that seven nonbanks qualify for the new scrutiny. That would include payments services from Apple, Google and Amazon, as well as fintech firms including PayPal and Block and peer-to-peer services Venmo and Zelle.

While the CFPB already had some authority over digital payment companies because of its oversight of electronic fund transfers, the new rule allows it to treat tech companies more like banks. It makes the firms subject to “proactive examinations” to ensure legal compliance, enabling it to demand records and interview employees.

“Digital payments have gone from novelty to necessity and our oversight must reflect this reality,” said CFPB Director Rohit Chopra. “The rule will help to protect consumer privacy, guard against fraud, and prevent illegal account closures.”

Read more: https://www.cnbc.com/2024/11/21/cfpb-expands-oversight-of-apple-pay-other-digital-payments-services.html

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Link to CFPB PRESS RELEASE - CFPB Finalizes Rule on Federal Oversight of Popular Digital Payment Apps to Protect Personal Data, Reduce Fraud, and Stop Illegal “Debanking”

[DENVERPOPS]

1. I expect this new regulation

Will only be in effect for approximately 60 more days.........

AND, that the Consumer Financial Protection Bureau's demise will come shortly thereafter............

Not to mention any and all Federal Regulatory Agencies what-so-ever.........

[FakeNoose]

2. This is a good thing

... however I won't change my personal banking rules. I've never put any bank or credit card info on my phone, and I don't intend to start doing that now. If my credit or debit card can't be used in a buying transaction, then I don't buy. I still carry my checkbook with me, but I rarely use it anymore.

I quit shopping on Ebay when they went "all PayPal" about 10 years ago