The Consumer Financial Protection Bureau (CFPB) finalized a rule on November 21, 2024, expanding its oversight to nonbank firms that offer financial services, including PayPal. This rule applies to tech giants and payments firms handling at least 50 million transactions annually.
Under the new rule, these firms will be subject to 'proactive examinations' to ensure compliance with laws that banks and credit unions already follow. This allows the CFPB to demand records and interview employees.
The expanded oversight is intended to protect consumer privacy, guard against fraud, and prevent illegal account closures, treating digital payment companies more like traditional banks. The rule will take effect 30 days after its publication in the Federal Register.
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