Fintech Block ordered to comply with CFPB probe

(Reuters) - Fintech firm Block Inc must comply with the U.S. Consumer Financial Protection Bureau's demand for information about how it handles complaints regarding its Cash App payment platform, a federal judge in San Francisco ruled on Wednesday.

U.S. Magistrate Judge Sallie Kim said that the CFPB's requests for documents about whether the company failed to adequately handle user concerns over fraud and errors was not "unduly burdensome."

Block, led by Twitter founder Jack Dorsey, had said in court filings that it was working to comply with the requests and that no court intervention was required.

"We remain committed to working cooperatively with the Bureau," a Block spokesperson said in an email.

A CFPB spokesperson declined to comment.

The CFPB sued Block in August, accusing the company of "slow-walking" its responses to document demands the agency made in 2020 and 2021.

The agency is seeking emails to and from Cash App co-creator Brian Grassadonia regarding unauthorized transactions in user accounts, according to court papers.

In Wednesday's order, Kim wrote that she was "confused" why Block had opposed an order enforcing the demands, since the company "has directly stated that it will fully comply."

Earlier this month, the San Francisco-based company posted a rise in third-quarter revenue as the growth of Cash App helped make up for stagnant cryptocurrency prices that had dogged the payments platform in previous quarters.

The case is Consumer Financial Protection Bureau v. Block Inc, U.S. District Court for the Northern District of California, No. 22-mc-80214

For Block: Meredith Boylan, Sean Unger and Allyson Baker of Paul Hastings

For the CFPB: Joyce Chen and Sarah Baldwin

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