PayPal Sues CFPB, Alleging Disclosure Mandate Confuses Consumers (1)

PayPal Inc. sued the Consumer Financial Protection Bureau, seeking to block a rule that requires it to make disclosures that allegedly confuse consumers.

The “Prepaid Rule” requires that customers of PayPal and Venmo, its subsidiary peer-to-peer payments app, be given a “short form” fee disclosure that includes categories not relevant to PayPal’s products, the company alleges in a suit filed Dec. 11 in the U.S. District Court for the District of Columbia.

The form includes references to fees for ATM balance inquiries, customer service, electronic withdrawal and other categories, the complaint asserts.

The disclosure has confused many PayPal customers, who ...