The Consumer Financial Protection Bureau (CFPB) is considering putting Google under the same level of federal supervision as banks, according to a report by The Washington Post. This move would mean Google could face regular inspections and closer monitoring of its financial services. While details about the CFPB’s concerns are unclear, the process is still in early stages and could change.
CFPB Director Rohit Chopra has pushed for broader oversight of tech companies offering financial services, like Google’s digital wallet. This app allows users to store credit cards and make payments. Over the years, the CFPB has received numerous complaints about Google services, including reports of unauthorized charges. Adam Kovacevich, CEO of the Google-backed Chamber of Progress, criticized the effort, calling it “legally unfounded.”
The CFPB was created after the 2008 financial crisis to protect people from unfair financial practices. It typically monitors banks and credit unions, but Chopra has aimed to include digital payment providers in its scope. Google has reportedly opposed this move for months, as it could create stricter rules for its financial tools.
Trump Administration May Shift Focus
However, this effort might not go far. Donald Trump’s upcoming presidency in January could change the direction of the CFPB. Historically, Republican leaders have expressed skepticism about the agency’s role and have been less supportive of its attempts to expand oversight. Analysts predict that once the new administration takes over, the CFPB may scale back its activities, including this push to regulate Google.
The outcome of this initiative will depend on whether it’s finalized before the leadership change. If successful, it could set new standards for regulating tech companies that operate financial services.
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