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Apple will now be treated like a bank

(9to5mac.com)
105 points mgh2 | 4 comments | 22 Nov 24 06:06 UTC | HN request time: 0.614s | source
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Animats ◴[22 Nov 24 07:39 UTC] No.42211888[source]▶
It's not about Apple. It's Apple, Google and Amazon, PayPal, Block, Venmo and Zelle.[1] Everybody with over 50,000,000 transactions annually gets CFPB oversight. Actual rule: [2]

This doesn't really do much. It creates no consumer rights. It does give CFPB examiners the power to examine records and interview people. It means that numbers such as how many PayPal customers have complaints will be looked at. Bank examiners look at error rates, fraud losses, unresolved complaints, and such. The effect will probably be that some of the big players with weak customer service will have to get their act together.

[1] https://www.consumerfinance.gov/about-us/newsroom/cfpb-final...

[2] https://files.consumerfinance.gov/f/documents/cfpb_final-rul...

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almostnormal ◴[22 Nov 24 08:16 UTC] No.42212047[source]▶
Paypal isn't just treated like a bank, it is a bank, at least in the EU.
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1. graemep ◴[22 Nov 24 10:43 UTC] No.42212701[source]▶
Its regulated as an "electronic money institution" in the UK—i.e. its regulated but it does not have the rock solid guarantees that make banks a safe place to keep your savings.
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2. chii ◴[22 Nov 24 10:49 UTC] No.42212743[source]▶
but could paypal legally use the money you deposited inside your paypal account for some other purpose (of their choosing), provided they can front the money back if you ask for it?
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3. everfrustrated ◴[22 Nov 24 11:32 UTC] No.42212955[source]▶
In the UK no. This is reserved for Banks only. They can make money on the interest which I presume is why EBay UK has moved to a no-fees model but they now keep your money in a balance rather than paying out immediately.
4. withinboredom ◴[22 Nov 24 11:51 UTC] No.42213049[source]▶
Under most US money transmitter laws, they can’t do that either, not even off the interest. (Hence why they charge fees to move money)