WASHINGTON— After finalizing a rule to supervise the largest nonbank companies offering digital funds transfer and payment wallet apps, the Consumer Financial Protection Bureau has published a new order establishing supervisory authority over Google Payment Corp.
The CFPB noted it has supervised nonbank entities in certain industries like mortgage and payday lending, service providers to banks and credit unions, and larger players in particular markets as defined by rule.
“In 2022, after conducting an assessment of its supervision program, the CFPB identified that the agency was failing to conduct oversight using a specific legal authority to supervise entities posing risks to consumers. The CFPB began to utilize this dormant authority and issued procedures to promote transparency about this tool,” the agency said.
A Contested Matter
The CFPB’s procedures require the CFPB to issue a notice to an entity not currently subject to a supervisory examination. The entity can either consent to supervision or contest the notice, the agency said.
“Typically, the notices have pointed to consumer complaints and other indicators of risk to consumers,” the CFPB said, adding most entities receiving notices have decided to consent to supervision.
“These entities operate in a range of industries across consumer financial services,” the CFPB said.
“The CFPB is publicly releasing its second supervisory designation order in a contested matter, pursuant to its procedural rules. 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 CFPB is making this order public to provide transparency about how it assesses risks using consumer complaints and other factors,” the CFPB said.
The CFPB noted that its order does not constitute a finding that the entity has engaged in wrongdoing. The CFPB’s order does not require the CFPB to conduct a supervisory examination.
Read the supervisory designation order.