CFPB Places Google Payment Corp. Under Federal Supervision

According to Reuters, the Consumer Financial Protection Bureau (CFPB) announced on Friday that it has placed Google Payment Corp. under federal supervision. Google has filed a lawsuit to block the CFPB's order, which could result in Google being subject to routine inspections and monitoring similar to those imposed on financial institutions.

The CFPB found that Google's error resolution and fraud prevention processes may pose risks to consumers, citing complaints regarding Google Pay balances and peer-to-peer payments. The Washington Post reported that Google claimed these complaints were "baseless" in the lawsuit, including allegations that the company appeared to inadequately investigate fraudulent charges and did not "sufficiently explain" investigation outcomes.

CFPB stated that identifying Google for supervision does not imply the company is "guilty of misconduct." The agency also noted in the order that Google Pay and its peer-to-peer payment service ceased operations earlier this year.

Google spokesperson Jose Castaneda remarked that this is a clear case of government overreach involving Google Pay's peer-to-peer payments, which never posed risks and are no longer offered in the United States.