PayPal is reportedly taking the Consumer Financial Protection Bureau (CFPB) to court, over accusations of making the firm reveal “misleading and confusing” informations regarding its fees.
Specifically, the payment processing heavyweight has pressed charges against the CFPB on December 11, accusing the agency of purportedly ignoring major distinguishes, between crypto wallets and prepaid options, nominally prepaid debit cards (GPR).
Previously, the CFPB has notified that crypto wallets and GPR cards will be in compliant with the same regime of regulation, which, according to the submitted documents from Paypal, appears to be “fundamentally ill-suited” for the firm’s crypto wallets.
The lawsuit also mentioned the “Prepaid Accounts Under the Electronic Fund Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z) Rule.” – officially in effect from April this year – compelling Paypal to publicly reveal fees, uncharged by the firm, and misrepresent the exact fee its clients have to pay.
Ultimately, the rule requires Paypal to reveal the highest fees needed to pay, in the worst situation that can occur, for every required fee category.
Beside from requesting the court to rule the CFPB law not in accordance to the government’s constitution, Paypal also asked for appropriate cover of costs and reasonable attorney’s fees.
A ruling in favor of Paypal could be a huge advancement for crypto, as “PayPal is stepping up and defending the business operation of each of its competitors, protecting themselves from unwarranted and almost endless liability at any given point in time”, per internet attorney Andrew Rossow.