PayPal, Google Join Fight to Repeal CFPB Prepaid Rule

By Gregory Roberts, Bloomberg BNA

Mobile-wallet providers like PayPal and Google have their own ax to grind in the prepaid card industry’s push to have Congress quash a pending rule from the Consumer Financial Protection Bureau.

The companies are particularly unhappy with a provision that would require a 30-day waiting period before extending credit to cover overdrafts.

Such an “arbitrary delay” isn’t necessary to ensure adequate credit underwriting, executive director Brian Peters of Financial Innovation Now (FIN) told Bloomberg BNA. FIN, in Washington, comprises PayPal, Google, Intuit, Amazon and Apple.

“It ignores the fact that modern technology can assess creditworthiness ...