Careful examination, regulation needed for big tech payments products
CUNA supports the Consumer Financial Protection Bureau’s (CFPB) inquiry into the tech companies’ payments practices and strongly encourages the bureau to carefully examine and regulate these entities moving forward, it wrote in response to the CFPB’s inquiry into big tech payment platforms.
“Consumers benefit from innovation that offers new delivery channels and products as well as innovations to traditional products,” the letter reads. “Credit unions want to ensure that financial products and services available from fintech companies or any company offer the same protections as those offered by regulated entities.”
“Our members do not want to discourage innovation, they merely want to ensure that innovation does not allow new entrants to make an end run around regulation,” it adds.
CUNA notes concern with:
- Tech companies and other non-banks purposely constructing products and services and using partnerships to skirt consumer protection laws.
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