In June, the Consumer Financial Protection Bureau (CFPB) issued a report (Report) summarizing its research into the use of artificial intelligence (AI) in consumer finance. The Report focused on the shift away from "human support" to "algorithmic support" in the banking and consumer finance industry. The CFPB provided analysis of the use of chatbots and outlined risks associated with the technology. In addition to confirming that it will take an active role in monitoring compliance in the context of AI, CFPB made clear that chatbot technology should only be deployed if it can:
Borrowing to buy a home is one of the biggest financial decisions a family will make. Mortgage servicers are the companies responsible for processing payments and managing mortgage accounts, and they play a critical role in assisting homeowners with repayment. Borrowers don’t choose these companies – servicers are chosen by the lender or investor that owns the mortgage.
The CFPB has released its Spring 2023 rulemaking agenda as part of the Spring 2023 Unified Agenda of Federal Regulatory and Deregulatory Actions. The agenda’s preamble indicates that “[t]he Bureau reasonably anticipates having the regulatory matters identified [in the agenda] under consideration during the period from June 1, 2023 to May 31, 2024.”
Recently, PGX Holdings, Inc. (PGX), one of the nation’s largest consumer credit repair companies, and twelve affiliates have entered into Chapter 11 bankruptcy under pressure from a potential $3 billion CFPB judgment for violations of federal consumer protection laws.
OAKLAND — California Attorney General Rob Bonta today announced that he has joined a bipartisan coalition of 23 attorneys general in submitting a comment letter to the National Telecommunications and Information Administration (NTIA) that underscores the need for transparency and accountability in Artificial Intelligence (AI) policies.
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