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ReportFinanceUSConfirmed

CFPB warns banks that poorly deployed chatbots can break consumer finance law

See how this story connects

Source: Consumer Financial Protection BureauAlso reported by Orrick InfoBytes

The Consumer Financial Protection Bureau published an Issue Spotlight on chatbots in consumer finance on 6 June 2023. It found that all of the 10 largest US commercial banks use chatbots and that about 37% of the US population, some 98 million people, used a bank chatbot in 2022. The report lists risks including wrong answers from large language models, customers stuck in loops with no route to a human, and privacy and security failures.

Why it matters

US banks moving customer service to chatbots and large language models were told that consumer protection duties still apply to answers a bot gives and to customers it fails.

When
6 Jun 2023
ID
WTA-N-2023-0064
Who
Consumer Financial Protection Bureau

Summary by wheresthe.ai, from Consumer Financial Protection Bureau and the reporting credited above. Checked against the source on 9 Oct 2026.

Read the original at Consumer Financial Protection Bureau

Source copy: download the source PDF as saved on 18 Oct 2026 (PDF). Document the source offers: the source PDF. Also held by the Internet Archive.

Next stop on this Storyline: What happened nextCFPB says lenders using AI models must give specific reasons when they deny credit

Cite this story

WTA-N-2023-0064: “CFPB warns banks that poorly deployed chatbots can break consumer finance law.” wheresthe.ai, 6 Jun 2023. https://wheresthe.ai/d/us-cfpb-chatbots-consumer-finance-spotlight-2023-06/ (source: Consumer Financial Protection Bureau).

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