Google Challenges CFPB's Federal Oversight of Payment Division in Court

The Consumer Financial Protection Bureau cites consumer risks in its supervision order, while Google argues the move is based on unsubstantiated complaints.

The CFPB has placed Google Payment Corp. under federal supervision, citing consumer complaints about fraud prevention and error resolution in its discontinued Google Pay peer-to-peer payment service.
Google has filed a lawsuit in federal court, arguing that the CFPB's decision is based on a small number of unverified complaints and constitutes government overreach.
The CFPB clarified that the supervision order does not imply Google has engaged in wrongdoing but allows for monitoring similar to that of banks.
The agency stated that past conduct and potential risks justify supervision, even though Google Pay’s peer-to-peer service was discontinued in the U.S. earlier this year.
The legal battle comes as the CFPB, under Director Rohit Chopra, has increased scrutiny of tech companies offering financial services, with potential regulatory shifts expected under the incoming Trump administration.