CFPB warns against storing money in Venmo and PayPal.

The Consumer Financial Protection Bureau (CFPB) has warned that digital payment apps like Cash App, PayPal, and Venmo pose a financial risk to consumers as the money stored on these apps may not be held in accounts with federal deposit insurance. This means that if there's a financial crisis, users could lose their funds. The CFPB also noted that these apps lack the same regulatory oversight as insured banks or credit unions, and their user agreements tend to lack clarity and specifics about how they handle users' money. The agency advises consumers to consider keeping their money in a high-yield savings account insured by the Federal Deposit Insurance Corp.
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