WASHINGTON—An inquiry by the Consumer Financial Protection Bureau’s into tech companies’ payments practices is getting support from CUNA, which said it strongly encourages the Bureau to carefully examine and regulate these entities moving forward.
CUNA’s input was shared in a letter to the CFPB sent in response to a CFPB order that Google, Apple, Facebook, Amazon, Square, and PayPal submit information about their payments products, plans, and practices.
“Consumers benefit from innovation that offers new delivery channels and products as well as innovations to traditional products. Credit unions want to ensure that financial products and services available from fintech companies or any company offer the same protections as those offered by regulated entities,” the letter reads. “Our members do not want to discourage innovation, they merely want to ensure that innovation does not allow new entrants to make an end run around regulation.”
CUNA said it also has concerns over:
- The potential of tech companies and other non-banks to purposely construct products and services to skirt consumer protection laws
- How tech uses and protects information collected from consumers