Show Me the Money: Attorneys General Urge CFPB on Complaints About Money-Sharing Platforms, Apps

  • On December 20, 2021, a bipartisan group of 33 AGs, led by Idaho AG Lawrence Wasden and Oregon AG Ellen Rosenblum, sent a letter to the Director of the CFPB in response to the CFPB’s Request for Comments on its Inquiry into Big Tech Payment Platforms. In the letter, the AGs urged the CFPB to strengthen consumer protections for money-sharing platforms and apps.
  • The AGs’ letter lauds innovation in the real-time payment industry, noting that it can provide significant benefits to consumers, but also warns that immediate money transfers have higher potential for user error and fraud.
  • The letter goes on to stress the need for the real-time payment industry to employ sufficient consumer safeguards to effectively manage complaints, disputes, and errors, and highlights a rise in consumer complaints alleging the unavailability of customer service, inability to access or transfer funds, and unauthorized and fraudulent money transfers by third parties.