Digital wallet company PayPal disclosed it won’t face enforcement regarding a Consumer Financial Protection Bureau (CFPB) probe into its subsidiary Venmo.
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PayPal said it received investigative demands from the CFPB “related to Venmo’s unauthorized funds transfers and collections processes and related matters, including treatment of consumers who request payments but accidentally designate an unintended recipient.” The company responded to requests for documents and answers to written questions from the agency.
In March, the CFPB told PayPal it was concluding its inquiry without taking action, the company said in a regulatory filing Tuesday.
Financial technology companies like PayPal are facing greater scrutiny from the CFPB, which is actively seeking to expand its supervision authority over nonbanks. The agency’s director, Rohit Chopra, has cited the rapid growth of such companies as reason to ensure proper supervision and prevent harm to consumers.
In its filing, PayPal said it cooperating with a separate CFPB probe regarding its compliance with Regulation E, which is designed to protect consumers using electronic fund and remittance transfers.
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