Wal-Mart Should Be Regulated by CFPB, Says Banking Sector

August 15, 2011

SFGate reports that bank officials are calling for the Consumer Financial Protection Bureau to have oversight of Wal-Mart, arguing that the company falls under the Dodd-Frank bill’s definition of a large financial services player.

“Banks have tried for more than a decade to slow Walmart’s moves into finance, fearing its ability to underprice rivals,” continues SFGate

The financial industry, along with unions and community groups, fought against the company’s bid in 2005 to secure a banking license that would have allowed it to accept deposits and issue credit cards. The company eventually dropped the application.”

Wal-Mart manages MoneyCenters in 1,800 U.S. locations, providing money transfers, bill payment and prepaid debit cards, according to the newspaper. The company announced earlier this month that it would be expanding cashing and checking services to nearly all of its 4,300 stores. (Read more)

“Like Walmart, consumer banks are vying for the business of lower-income people,” adds SFGate.

Mexico and Canada have issued Wal-Mart banking licenses. In Canada, the new Walmart Rewards, a MasterCard credit card, is “performing ahead of plan,” according to the company’s Canada spokesman Andrew Pelletier. Click here to read the full SFGate article on the continuing feud between Wal-Mart and U.S. banks.

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