After being at the receiving end of multiple court rulings that ranged from its search monopoly, and their advertising technology policies, Google has now gone on the offensive following an oversight order against it’s of its payments division.

Last week, the US Consumer Financial Protection Bureau (CFPB) ordered federal supervision of Google Payment after determining it needs Federal Government oversight.

The CFPB monitors banks, credit unions and other financial institutions, and recently finalised a rule to supervise digital payment apps.

The regulatory body said it has “reasonable cause to determine that Google has engaged in conduct that poses risks to consumers.”

The risks identified by the CFPB are linked to Google’s handling of erroneous transactions and fraud prevention.

 

Based on customer complaints, the order said it appears that Google didn’t adequately investigate erroneous transfers, or adequately explain the findings of its investigations into these issues, according to Endgadget.

However, the CFPB notes that its order “does not constitute a finding that the entity has engaged in wrongdoing,” nor does it “require the CFPB to conduct a supervisory examination.”

In response, Google has now filed a lawsuit challenging the decision.

“This is a clear case of government overreach involving Google Pay peer-to-peer payments, which never raised risks and is no longer provided in the US, and we are challenging it in court,” said Google spokesperson José Castañeda.

In the lawsuit filed in a district court in Washington, Google said the CFPB’s supervision would be a “burdensome form of regulation” imposed based on a “small number of unsubstantiated user complaints.”

It added that the CFPB committed a legal error by setting an “exceedingly low bar” for what it counts as sufficient risks to consumers.