Consumer protection officials from the United States and the European Commission met to discuss three common priorities: buy now, pay later (BNPL), digital payments, and artificial intelligence (AI).
The three meetings followed the announcement in July 2023 that the U.S. Consumer Financial Protection Bureau (CFPB) and the European Commission would begin an informal dialogue on various consumer financial protection issues, the organizations said. made the announcement in a joint statement on Thursday (April 11).
CFPB Director Rohit Chopra and European Commission Commissioner for Justice and Consumer Protection Didier Reynders said in a statement: “These discussions will undermine the ability of our government agencies to carry out their official duties.'' has been strengthened.”
In a staff-level session on BNPL and over-indebtedness, both organizations discussed the rise in consumer over-indebtedness. the expected growth of the BNPL industry; The statement noted the consumer risks identified, the legal framework in place and future planned initiatives regarding the BNPL industry.
In a session focused on digital payments access and fraud and the involvement of Big Tech companies in consumer finance, the CFPB and EC discussed current and proposed regulations regarding open banking and digital payments fraud. The role of non-banks in payments. The impact of digital access on the unbanked. The statement also outlined efforts to address the risks associated with Big Tech's role in consumer finance.
On the topic of AI, staff from the two organizations discussed laws and regulations addressing AI. Automated decision-making applied by Germany's leading credit score company. Risks related to discrimination. Efforts are also being made to strengthen the company's technical expertise on AI and other issues, the statement said.
“Together, we can ensure that consumers across the Atlantic respect their financial data and privacy and that it is not monitored or misused. Maintaining meaningful choice in a competitive consumer finance market Avoid fraud and manipulation. And have the tools you need to get redress when something goes wrong,” Chopra and Reinders said in a statement. “We look forward to continuing this dialogue.”
In announcing the start of this “informal dialogue” in July 2023, Chopra and Reinders said pricing, customer service, competition and privacy could all be affected by the digitalization of the financial services sector. He said there is.