Days after the Consumer Financial Protection Bureau (CFPB) issued an order establishing supervisory authority over Google Payment Corp. (GPC), citing reason to believe its products and services posed a possible risk to consumers, the Google LLC subsidiary filed suit against the CFPB in the U.S. District Court for the District of Columbia.
The lawsuit claims the decision by the bureau and CFPB Director Rohit Chopra suffers from “numerous legal defects,” as well as “cherry-picked and unverified complaints” about a retired GPC product.
Upon issuing the supervisory order in question, the bureau justified the move, in part, by citing the results of a 2022 assessment of its supervision program to conduct oversight using a specific legal authority to supervise entities posing risks to consumers. Shortly after, the CFPB began to utilize the dormant supervisory authority and issued procedures to promote transparency surrounding its use.
Dodd Frank Update will have more information on this matter shortly.