PayPal Holdings\nsued federal banking regulators alleging that its new rule has hampered the\ncompany\u2019s ability to offer credit products and has created confusion among\nusers of its popular digital-payment services PayPal and Venmo with a new\nregulation on prepaid accounts that was rolled out by the Consumer Financial\nProtection Bureau (CFPB) in April of 2019. <\/p>\n\n\n\n
The rule\u2019s\nprimary aim is to improve protections for consumers on prepaid payment cards. A\nside effect of the rule is it also extends to any financial products capable of\nholding cash balances directly on cards or electronic devices, better known as\n\u201cdigital wallets.\u201d<\/p>\n\n\n\n
As a result,\nthe rule umbrellas digital-payment tools such as PayPal,\nVenmo, Alphabet Inc.\u2019s Google Pay, and Square Inc.\u2019s Cash\nApp. Even though digital wallets are fundamentally different from prepaid\ncards, which are often sold at grocery and drugstores. Apple Cash comes under\nthe rule\u2019s oversight, while Apple Pay, which doesn\u2019t store money, does not.<\/p>\n\n\n\n
The regulation\ninstills complex requirements on issuers to disclose fees and other terms of\nservices, while placing limits on their ability to offer credit products to\ncustomers.<\/p>\n\n\n\n
If you are\nlooking into a civil action or lawsuit, contact us at our office at\n816-524-4949 or visit our website at www.hoorfarlaw.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" PayPal Holdings sued federal banking regulators alleging that its new rule has hampered the company\u2019s ability to offer credit products and has created confusion among users of its popular digital-payment services PayPal and Venmo with a new regulation on prepaid … Continue reading