PayPal vs. Consumers?
Payments giant sues Consumer Bureau
American Banker reports that payments giant PayPal is taking on the Consumer Financial Protection Bureau (CFPB) in a lawsuit that could have far-reaching implications in the fintech industry.
American Banker notes:
The online payments giant sued the CFPB in 2019, claiming digital wallets should not be subject to the same fee disclosures as prepaid cards because they are inherently different products. A ruling in favor of PayPal could limit the CFPB’s authority under the Dodd-Frank Act to mandate and prescribe consumer disclosures, experts said.
Brian Tate, president and CEO of the Innovative Payments Association, an industry trade group, called the PayPal lawsuit “one of the most important and least-covered stories in payments, depending on which way the court rules. … This case has the potential to have a huge impact on the marketplace.”
The move by PayPal comes as a newly energized CFPB under Biden appointee Rohit Chopra is seeking greater authority in the fintech space:
