Consumer complaints about error resolution at Google Payment Corp., Google’s online payments arm, have led to the federal consumer financial protection agency establishing direct supervisory authority over the nonbank firm, which reportedly is suing over the action.
The Consumer Financial Protection Bureau (CFPB) first issued a notice to the firm in March 2023 that said the agency had found that it had reasonable cause to determine Google Payment engaged in conduct that poses risks to consumers. Google had contested the finding.
The bureau said it issued the order under its nonbank supervision authority provided by the Consumer Financial Protection Act (CFPA). In this case, the agency is exercising nonbank supervision authority that is not specific to any particular consumer financial product or service, the bureau noted. It also said the order “does not constitute a finding that the entity has engaged in wrongdoing.”
However, the agency said the consumer complaints submitted to the bureau provide reasonable cause to determine that Google’s practices in connection with investigating allegedly erroneous transactions have posed risks to consumers. It said the complaints indicate:
(1) that Google failed to adequately investigate allegedly erroneous transfers made via its P2P payment platform;
(2) failed to adequately explain the results of its investigations when it determined that no erroneous transfer had occurred;
(3) failed to provide consumers any further recourse or offer to provide supporting documentation after making a determination that no erroneous transfer had occurred; and
(4) failed to protect consumers from liability for erroneous transfers.
“While Google Payment Corp. is already subject to CFPB’s enforcement jurisdiction, the CFPB has determined that Google Payment Corp. has met the legal requirements for supervision,” the bureau said Friday. “The CFPB is making this order public to provide transparency about how it assesses risks using consumer complaints and other factors.”
CFPB Orders Federal Supervision of Google Following Contested Designation
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