Storylines / Organisation
Consumer Financial Protection Bureau
3 developments involving Consumer Financial Protection Bureau in 1 country or body. The most recent is CFPB says lenders using AI models must give specific reasons when they deny credit, 19 Sep 2023.
KeyStory
- CFPB says lenders using AI models must give specific reasons when they deny credit
US lenders using black-box credit models were told that the model’s complexity does not excuse vague denial notices, so they need models that can explain each decision.
- CFPB warns banks that poorly deployed chatbots can break consumer finance law
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.
- CFPB, FTC, EEOC and DOJ say existing laws apply to automated systems and AI
Lenders and fintech firms using algorithmic credit, marketing or valuation models were told by four federal agencies that no AI-specific exemption exists under the laws they already enforce.