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HomeBitcoin‘Block’ Under Scrutiny by Consumer Financial Protection Bureau

‘Block’ Under Scrutiny by Consumer Financial Protection Bureau

  • Cash App’s handling of customer complaints and disputes is the subject of the probe.
  • The deadline for 2021 compliance was also December 5, 2021.

Block Inc., founded by Jack Dorsey, is being sued by the Consumer Financial Protection Bureau (CFPB). The Consumer Financial Protection Bureau claims that Block did not cooperate with the agency’s investigation requests concerning the company’s Cash app financial services.

The Cash App is a widely-used marketplace for trading equities and cryptocurrencies like Bitcoin. The Consumer Financial Protection Bureau (CFPB) requested a civil investigative demand from the US District Court for the Northern District of California in a petition filed on August 18.

Tug of War Between the Duo

According to the Consumer Financial Protection Bureau, Block Inc. must turn over all information and records requested in August 2020 and August 2021. Cash App’s handling of customer complaints and disputes is the subject of the probe.

Block, however, has voiced dissatisfaction, saying that despite their frequent contact and cooperation, the CFPB nonetheless opted to submit a petition. 

A Block Spokesperson stated:

“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”.

The CFPB said it had repeatedly contacted Block’s legal team to obtain information and files. In addition, they agreed on extending due dates jointly. Despite this, the Block did not respond to the CFPB’s requests for documentation about six individual inquiries.

It was also said there would be a deadline of October 14, 2020, for complete compliance with the investigation demand made in 2020. The deadline for 2021 compliance was also December 5, 2021.

The CFPB’s petition reads:

“The Bureau cannot sit back while its investigation is stymied by Block’s slow-walking. Not engaging meaningfully in the meet and confers is an easy justification for the staff to pursue the lawsuit”.

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