Tell the CFPB:
Protect Our Financial Privacy
Have you used an app like Venmo, PayPal, Zelle, Apple Pay, Google Pay, or Cash App recently to transfer money to a friend, pay for something online or in-person? If the answer is yes, then you should know that these apps do not have to comply with the same rules as your bank and credit card company. Traditional financial institutions are supervised by the federal government to make sure they follow certain privacy rules, but right now that supervision doesn’t cover apps like Venmo. That means Venmo and others can get away with selling your transaction data to anyone willing to pay for it. This is a big problem when it comes to your privacy.
The good news is that we can change this. The Consumer Financial Protection Bureau (CFPB)—the agency that keeps consumers like us safe from abusive financial practices—is working on a rule to make sure those apps have to protect your privacy. The companies will be fighting against this rulemaking so the CFPB needs to hear from everyone who supports these new rules. The more the CFPB hears from people that this will be good for them, the more they can enact stronger privacy rules.
The comment period is now closed. We will keep this page updated as the process continues. You may continue to send comments here. We will collect and submit them if an opportunity to comment opens again.
Tell the CFPB to rein in corporate abuse and protect financial privacy
Anyone can submit a comment to the CFPB to influence this rulemaking. Fill out this form to send a comment letting them know why this could make a difference to you. Make sure to include personal experiences and stories from your experiences with digital payment apps such as Venmo, PayPal, Zelle and Cash App. on surveillance and data collection.
RESOURCES AND INFO
- Apps like Venmo, Cash and PayPal are free, but here's who they are telling your business — USA Today
- CFPB Proposes New Federal Oversight of Big Tech Companies and Other Providers of Digital Wallets and Payment Apps — Consumer Financial Protection Bureau
- CFPB proposes to expand oversight of digital payment apps offered by big tech firms — Consumer Reports
- The CFPB’s Digital Wallet Rule Proposal Reveals What’s Wrong with the CFPB — Cato Institute
- Consumer Reports Finds Peer-to-Peer Payment Apps Offer Ease and Convenience but Pose Potential Financial and Privacy Risks for Users — Consumer Reports
- Payment apps collect and share your data. Here's how to lock them down. — Mashable
- This Is a Reminder That You’re Probably Oversharing on Venmo — New York Times
SUPPORTERS
FAQ
The CFPB announced this rulemaking on November 7, 2023. It would mean that big tech companies and larger nonbank firms that provide digital wallets and payment app services would be subject to the same supervisory examination process as banks. This could include apps like Venmo, PayPal, Zelle, and CashApp. The proposed rule would apply to nonbank payments companies that offer digital wallets or person-to-person payments through mobile and web applications, process more than five million covered payment transactions per year and are not a small business. These companies would have to adhere to the same rules as large banks, credit unions, and other financial institutions already supervised by the CFPB. The CFPB would be able to ensure compliance with applicable federal consumer financial protection laws, which includes applicable protections against unfair, deceptive, and abusive acts and practices, rights of consumers transferring money, and privacy rights.
CFPB rulemaking is different from legislation passed by Congress and signed into law by the President. The CFPB is limited in what its rules can cover - the agency is tasked with implementing and enforcing Federal consumer financial law and ensures companies all play by the same consumer protection rules. The agency ensures that markets for consumer financial products are fair, transparent, and competitive. They arm consumers with the information, steps, and tools that they need to make smart financial decisions. Congress has the authority to pass legislation on any topic. However, both CFPB rules and legislation passed by Congress are laws that include enforcement and punishment. They attempt to protect consumers from unfair, deceptive, or abusive practices and take action against companies that break the law.
The proposed rule would cover general‐use digital payment apps including both fund transfer and digital wallet apps that are not small businesses and meet the five million annual transaction requirement. The proposal exempts apps that only facilitate payments for specific goods or services (i.e., are not general use), as well as for transactions with marketplaces through those marketplaces’ own platforms. This proposal could also apply to hosted cryptocurrency wallets and fund transfer apps but would not cover purchasing or trading cryptocurrencies, as it excludes exchanges of one form of funds for another, as well as purchases of securities and commodities regulated by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The CFPB in crafting new rules would need to be cautious about broad language and overreach to ensure that individuals who are merely participating in the development or maintenance of cryptocurrency software are not inappropriately swept into a supervisory regime.
This is a lengthy process with multiple opportunities to engage. Right now, the biggest step you can take is submitting a comment through the form above, and add any personal experience you’ve had related to surveillance, data collection, and security when using digital payment apps. Then share this page with your friends and family to help get more public comments.