On June 3, 2014, the Consumer Financial Protection Bureau announced that it will hold its first field hearing on "mobile financial services." The field hearing is scheduled for June 12, 2014, in New Orleans, Louisiana. The CFPB's announcement is accessible here.
CFPB director Richard Cordray will deliver remarks at the event, and representatives from consumer groups and the industry will provide testimony. The CFPB did not provide details about the specific consumer-group or industry participants in the hearing.
The particular focus of the field hearing is not apparent. For example, it is not clear whether the field hearing will focus on mobile payments, or is being organized by the CFPB in order for the attendees to learn about mobile banking (e.g., consumer use of smartphone applications to deposit checks and access account information). In either case, the CFPB's field hearing on mobile financial services is a newsworthy announcement.
It has been more than two years since a federal agency has sponsored a public forum on mobile financial services. In April 2012, the Federal Trade Commission hosted a workshop, titled "Paper, Plastic... or Mobile?" The FTC workshop, which focused primarily on mobile payments, was followed by the release of a FTC staff report summarizing information gathered during the workshop. The FTC staff report on the workshop is accessible here.
The CFPB has not said much publicly about its interest in, or concerns about, mobile payments. The only notable CFPB statement to date regarding mobile payments was made in June 2012 in connection with a congressional hearing held by the Subcommittee on Financial Institutions and Consumer Credit of the House Committee on Financial Services. At that time, the CFPB said it was "closely monitoring" mobile payment developments, and was engaging in "ongoing coordination with" other government agencies on the topic. The CFPB statement also said, "To the extent that technology companies begin to play roles traditionally performed by banking institutions, we may need to reconsider how well our existing regulations apply to a changed environment."
The CFPB's announcement of its field hearing could signal a new focus on mobile payments, or on other emerging consumer payment services.
Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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