Bureau, European Commission open dialog on ‘critical consumer issues,’ including AI, BNPL

“Critical financial consumer protection issues” will be the focus of joint talks between the federal consumer financial protection agency and its European counterpart, the agencies said Monday.

In their joint statement, the Consumer Financial Protection Bureau (CFBP) and the European Commission said their “informal dialogue” would focus on sharing “insights and experience” on issues related to consumer financial products and services. Among those:

  • Artificial intelligence and other forms of “automated decision making and processing of data in financial services” which, the agencies contended, raise the risk for consumers of less transparency, misuse of data and violation of privacy rights, discrimination and exclusion.
  • “Buy now, pay later” (BNPL) products and their related risks, including over-consumption and over-indebtedness.
  • Prevention of over-indebtedness to help those consumers struggling with too much debt to repay what they owe sustainably.
  • Ensuring fair choice and access to financial services for consumers as digital transformation proceeds, particularly for the unbanked, underbanked, and consumers who want to protect their own data.
  • Impact on consumers as “Big Tech” companies offer financial services, including payments.

Joint Statement by Didier Reynders, Commissioner for Justice and Consumer Protection of the European Commission and Rohit Chopra, Director of the United States Consumer Financial Protection Bureau