Consumer Financial Protection Bureau (CFPB) announced On Friday he informed Google Payment Corp. was placed under federal surveillance, reports reutersGoogle reportedly sued to block it CFPB orderWhich may result in regular inspections and monitoring imposed on banks.
The agency cited consumer complaints about Google Pay Balance and Google's peer-to-peer payments, finding that Google's error resolution and fraud prevention processes pose risks to consumers. Complaints that Google's lawsuit claims are “meritless” according to Washington Post, It also includes that the company did not thoroughly investigate the fraud allegations and did not “adequately explain” the results of those investigations.
The CFPB says that while its findings show that Google should be monitored, it does not mean the company is “guilty of wrongdoing.” It also notes in its order that Google Pay and P2P platforms were Discontinued earlier this year,
Google spokesperson Jose Castaneda gave a statement The Verge:
This is a clear case of government overreach related to Google Pay peer-to-peer payments, which never took a risk and is no longer provided In America, and we are challenging it in court.
Update 7 December: Added statement from Google spokesman Jose Castaneda.