On January 18, the CFPB filed a proposed final judgment against an Illinois-based third-party payment processor and its founder (collectively, “defendants”), which ceased operations almost three years ago, settling claims that the defendants facilitated payments for telemarketing fraudsters targeting seniors.

Continue Reading CFPB Bans Payment Processor for Engaging in Fraudulent Practices

Last week, the CFPB issued a series of orders to collect information on the business practices of six large technology companies operating payments systems.  The Bureau claims that the information will help better understand how these firms use personal payments data and manage data access to users so the Bureau can ensure adequate consumer protection.  The orders were issued pursuant to Section 1022(c)(4) of the CFPA, which authorizes the CFPB to order participants in the payments market to turn over information to help the Bureau monitor for risks to consumers and to publish aggregated findings that are in the public interest.  The CFPB notes that the development of new products and business models to meet consumer demands for online commerce and electronic payments during the pandemic “present new risks to consumers and to a fair, transparent, and competitive marketplace.”

Continue Reading CFPB to Tech Companies: Submit Payment System Information