Concerns about exploitation of consumer data by payment processors and buy-now-pay-later services

From Investing.com: 2024-06-12 15:41:51

Rohit Chopra, director of the U.S. Consumer Financial Protection Bureau, urged lawmakers to enhance protections against the exploitation of consumer data by payment processors and buy-now-pay-later services. Recent reports revealed plans by companies like JPMorgan Chase and PayPal to use customer payment data for targeted ads, prompting Chopra to emphasize the need for congressional action.

Chopra’s concerns stem from the potential trend of financial surveillance and censorship in the U.S. as companies seek to monetize sensitive financial data for advertising purposes. JPMorgan Chase clarified that their coupon offers are opt-in and do not involve sharing transaction or personal information. PayPal did not provide immediate comment on the matter.

The CFPB recently categorized buy-now-pay-later services as credit card providers, requiring them to address disputed charges and issue refunds. Chopra expressed worries that consumers may feel coerced into allowing such use of their data without many options. Senator John Kennedy questioned the agency’s funding source, alleging illegal draw from the Federal Reserve, but Chopra defended the CFPB’s compliance with the law after thorough assessment.



Read more at Investing.com: More consumer data safeguards needed, watchdog tells US Congress By Reuters