PayPal Sues Consumer Watchdog Over 'Prepaid Rule' Requirements

PayPal Inc. has filed a lawsuit against the U.S. Consumer Financial Protection Bureau (CFPB) over customer disclosure requirements included in the consumer watchdog's rules covering prepaid products, arguing its digital wallet products should be excluded from the rule's scope.

Filed in U.S. district court for Washington, D.C., the suit alleges the requirements mandate fee disclosures for services that are not applicable to PayPal or its Venmo P2P money transfer subsidiary and have left customers confused.

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