The Biden administration is asking the Consumer Financial Protection Bureau to study banks’ use of chatbots and address customer service “doom loops” as part of a broader effort. Announced on Mondaywe prioritize your time.
“Companies often intentionally design business processes to be slow and burdensome to discourage consumers from getting rebates or refunds they deserve, or canceling subscriptions or memberships they no longer want — all in order to maximize profits,” the White House wrote in introducing the initiative, called “Time is Money.” “Americans are tired of being scammed.”
As one pillar of this effort, the White House said the CFPB will issue guidance aimed at “crackdown on inefficient, time-wasting chatbots that banks and other financial institutions are using as a substitute for customer service.”
“While chatbots are useful for answering basic questions, they are limited in their ability to resolve more complex issues or disputes,” the White House said Monday. “Instead, chatbots often provide inaccurate information and send customers spinning around when they want a real human.”
Chatbots should “improve customer service with fast response times, [help companies] He said the White House was “failing to fulfill basic responsibilities like getting your tax refund.”
According to the White House, the CFPB plans to identify situations in which the use of automated chatbots or artificial intelligence to record voice messages would be illegal, even when customers believe they are speaking with a human.
“This is not an attempt to shame the entire company,” a senior administration official told reporters Friday. According to CNBC:Rather, it is a “new frontier in consumer protection.”
The effort comes about a year after the Biden administration and the CFPB stepped up their efforts. Eliminate unnecessary “junk fees”” The fee banks charge for basic services.
“Big banks can’t charge huge fees or trap customers in never-ending customer service loops when customers request basic information about their accounts,” CFPB Director Rohit Chopra told reporters in October.
The loop played out again in messaging on Monday, when the CFPB plans to propose rules that would require companies to let customers press a button to speak to a human.
Citing a recent survey, the White House reported that respondents said their biggest complaint about customer service was being forced to listen to a long message before speaking with a representative.
“Too often, customers seeking help from a real human being are sent through a maze of menu options and automated recordings, wasting their time and not getting the help they need,” the White House said Monday.
The CFPB isn’t the only agency under pressure to act: The White House said the Department of Health and Human Services plans to require health insurance providers to make it easier for customers to speak to a live person, and the Federal Communications Commission plans to launch an investigation into how phone, broadband, and cable companies can do the same.
A senior administration official said the “time is money” proposal does not require congressional approval. — At this time in the Biden administration — Because Republicans hold a majority in the House of Representatives, the bill is unlikely to pass.
But Monday’s efforts come as Biden’s Democratic successor, Vice President Kamala Harris, prepares to outline her economic policy..