CFPB’s New Director Hones in on Largest Big Tech Players

Consumer Financial Protection Bureau director Rohit Chopra, a former Federal Trade Commission member, is taking a closer look at Amazon.com, Apple, Facebook parent Meta Platforms, Google parent Alphabet and other technology giants in his new role, according to a Bloomberg report Friday (Dec. 3). 

Big Tech has been gaining more of a foothold into consumer payments and other financial sectors that have been a haven for banks and financial services companies, the report says. 

“We cannot have a two-tier system where financial institutions have to play by the rules, [and] where Facebook and other tech companies using mysterious black-box algorithms get to skate off with no accountability,” Chopra said Oct. 28 in his first testimony to the Senate Banking Committee as CFPB director. 

Individual tech companies haven’t been subject to supervision like banks in the past, and Silicon Valley leaders aren’t likely to want increased government oversight. Republicans who oppose stricter financial regulation are expressing concerns about CFPB overstepping its bounds by eyeing Big Tech. 

Chopra, meanwhile, plans to limit the CFPB’s scope to the largest players causing the most harm throughout all of consumer finance, including credit reporting companies, student loan providers, payday lenders, and mortgage servicers. 

Earlier this week, Chopra said the bureau will also take action against unlawful and exploitative overdraft fees.  

Related: CFPB Lays Groundwork for Open Banking’s US Push 

The CFPB will emphasize open banking, pressuring financial institutions that levy exorbitant overdraft fees and making it easier for consumers to bank where they want and take their data with them. 

PYMNTS research, in collaboration with MX, found considerable worry among 42% of more than 2,000 respondents about sharing details with third parties. More than four out of five respondents (82%) have a third-party financial app that could be connected to a bank account. 

Almost half (47%) of the survey group said they would be comfortable connecting digital wallets to their accounts.