Nuked The consumer finance protection bureau is investigating money transfer app Venmo over the way it handles collections, a new regulatory filing shows. Venmo owner PayPal received a civil investigative demand from the CFPB on January 21st,’related to Venmo’s unauthorized funds transfers and collections processes, and related matters’.
Paypal said in a statement emailed to the verge that it was working’productively with the CFPB to provide information, as requested, on our practices and processes’. The statement added that Venmo’remains deeply committed to its compliance obligations’.
Money transfers within the app usually occur immediately. Sometimes the funds do n’t leave the user’s bank account for more than 24 hours. Venmo covers the amount of the payment in the interim.
The WSJ has covered Venmo’s collection practices in the past. Last year, the WSJ reported that Venmo pursued collections at the same rate during the coronavirus pandemic.
Venmo says its user agreement details its potential use of collections. It complies with all law when it pursues collection activity.
