Many financial services providers would be required to allow consumers seeking assistance to be connected to a “real person” by clicking on one button, under a new Biden Administration “Time is Money” initiative.
“Companies often deliberately design their business processes to be time-consuming or otherwise burdensome for consumers, in order to deter them from getting a rebate or refund they are due or canceling a subscription or membership they no longer want—all with the goal of maximizing profits,” the administration said in a fact sheet.
“Americans should be able receive customer service on their terms and their own time without significant hassle or hardship,” the administration added.
As part of its plan, the CFPB would issue a proposal to require companies to eliminate “doom loops” during which consumers are required to navigate a maze of menu options and automated recordings before being helped.
As part of the initiative, the FCC also will launch an inquiry whether phone, broadband and cable companies should be subject to similar requirements. And, the departments of Health and Human Services and Labor plan to call on health plan providers to make it easier to talk to a customer service agent.
The CFPB also will issue rules or guidance to crack down on “ineffective and time-wasting chatbots” used by banks and other financial services providers.
“The CFPB will identify when the use of automated chatbots or automated artificial intelligence voice recordings is unlawful, including in situations in which customers believe they are speaking with a human being,” the administration said.
The CFPB issued a report on “Chatbots in Consumer Finance” in June 2023.
The new administration initiative will not help consumers, Neil Bradley, the U.S. Chamber of Commerce’s executive vice president, chief policy officer and head of strategic advocacy said.
“Businesses succeed by being responsive to customers and have a far better track record of customer service, streamlined paperwork, and prompt response times than the federal government,” Bradley said. “Imposing heavy-handed regulations that micromanage business practices and pricing is the wrong approach, inevitably raising costs for consumers.”