CFPB files a lawsuit against Sprint; mobile payments under more scrutiny

Monday 29 December 2014 09:00 CET | News

The Consumer Financial Protection Bureau (CFPB) has announced that it has filed a lawsuit against Sprint, a US-based telecommunications company for illegally processing charges through a third party.

According to the agency, Sprint has allowed third party vendors to place “tens of millions of dollars” in illegal charges. The agency also suggests that Sprint has ignored consumer complaints regarding the matter, collecting money from third party vendors without cause. The Consumer Financial Protection Bureau is now seeking court approval to force Sprint to refund money to consumers and pay fines associated with its alleged actions.

Furthermore, according to CFPB, from 2004 to 2013, Sprint outsourced payment processing for digital purchases, such as games and other mobile applications. The agency claims that many consumers were not aware that they would have to pay for these applications because of hidden charges. Sprint is accused of failing to properly monitor its third party vendors and stop them from charging consumers over their mobile devices.

The lawsuit against the telecommunications company brings more scrutiny to the mobile payments space and, depending on how the lawsuit plays out, the mobile commerce space may face more careful examination from government agencies. Potentially malicious activities from some online vendors bring into attention the need for more regulation in the mobile payments sector.

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Keywords: CFPB, lawsuit against Sprint, mobile payments under scrutinity, mobile payments, Sprint, payments , US, unauthorized charges
Categories: Payments & Commerce
Countries: World
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Payments & Commerce

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