Block ‘Disappointed’ After CFPB Says It ‘Stymied’ Cash App Probe
A Block spokesperson told PYMNTS Friday (Aug. 19) that the company is “disappointed” that the Consumer Financial Protection Bureau (CFPB) has filed a petition for a federal judge to force it to comply with the bureau’s investigation into Block’s Cash App tool.
The CFPB said in a court filing that the company has yet to turn over the documents the bureau requested, Bloomberg reported Friday. The CFPB is investigating Cash App’s complaint and dispute handling practices.
“The bureau cannot sit back while its investigation is stymied by Block’s slow-walking,” the CFPB’s filing petition said, per the report.
Block did not respond to six civil investigative demands (CIDs) from the CFPB, Bloomberg reported. The CFPB has met with Block attorneys several times to review the document and data requests and has agreed to both modify what it’s looking for and extend deadlines.
Block’s spokesperson told PYMNTS that the company has had “regular communication with the bureau” and is cooperating throughout the process.
“Since receiving the CIDs, we have been responding to their series of complex, broad and evolving requests, and we have continuously produced responsive information,” the spokesperson said. “We have been waiting weeks for the CFPB to respond to our most recent communication, which outlined the scope of our prior responses, set forth a proposed timeline for the remainder of the production of materials, and posed additional clarifying questions for the bureau.”
PYMNTS reported in March that Block, which was co-founded by Twitter Founder Jack Dorsey, is under investigation by the CFPB and a number of state attorneys general, looking at Cash App’s handling of customer complaints and disputes.
Read more: CFPB, State Attorneys General Probe Block Over Cash App
Cash App is used mainly to transfer money to friends and family, although users can also buy stocks or bitcoin directly from their phones.