Consumer Groups Call for Fairness in BigTech Payment Systems

65 Groups Call on Consumer Bureau to Take Action to Prevent Fraud

This week, 65 consumer, civil rights, faith, legal services, and community groups submitted comments to the Consumer Financial Protection Bureau (CFPB) in response to its inquiry into certain business practices of six large technology companies operating payments systems in the United States. The groups urged the CFPB to require person-to-person (p2p) payment providers to protect consumers from fraud and errors, and to work with the Federal Reserve Board to ensure protections are in place before the Fed launches its new FedNow p2p service.

“Tech companies must take responsibility when their payment apps allow fraud and errors and they give scammers a way to receive money. In today’s world of fintech and innovation, it is ironic that the primary response to fraud and errors in p2p systems is to use old-fashioned disclosures and warnings to consumers to ‘be careful,’” said Lauren Saunders, associate director of the National Consumer Law Center.

The CFPB inquiry comes as so-called “BigTech” companies expand their reach into financially lucrative consumer payment systems.

“Big Tech companies are eagerly expanding their empires to gain greater control and insight into our spending habits,” said CFPB Director Rohit Chopra. “We have ordered them to produce information about their business plans and practices.”