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December 11, 2024
Partner Mercedes Kelley Tunstall spoke with Bloomberg Law about the possible threat to the Consumer Financial Protection Bureau's ability to designate companies as a potential risk to consumers in an article, "CFPB's Google Fight Threatens Power to Designate Risky Companies," published on December 10.
On December 6, Google sued the CFPB after the agency issued an order putting part of the company, specifically the product "Google Pay," under its supervision. The specific designation of Google Payment—and any similar actions against other unsupervised consumer finance entities that pose a risk to customers—may be on the legal chopping block, said Mercedes.
“That could be at risk by doing things like this,” she said.
The power to designate companies as potential risks to consumers was given to the CFPB by the 2010 Dodd-Frank Act, but it was not used until CFPB Director Rohit Chopra announced plans to revive it in 2022, with a focus on financial technology companies.
Mercedes added that "allowing such designations makes sense when 'judiciously used,' given the speed with which fintechs have evolved."
Read the full article here.
