Specifically, Rohit Chopra, Director of the United States Consumer Financial Protection Bureau, and Didier Reynders, Commissioner for Justice and Consumer Protection of the European Commission, announced the commencement of an informal dialogue between their respective organisations. This dialogue focuses on various critical consumer financial protection issues. According to the official press release, since the announcement, both entities have held three meetings involving senior staff and subject matter experts to deliberate on shared priority areas.
In a joint statement, Director Chopra and Commissioner Reynders emphasised the increasing similarity of consumer finance markets across jurisdictions over the past decade. They highlighted the importance of coordination between the US and EU on matters such as firms, products, consumer trends, and risks spanning the Atlantic. Key topics discussed included the expansion of Big Tech’s financial services offerings, implications for consumer privacy and competition, evolution of the payments system, deployment of artificial intelligence (AI), and the emergence of products such as Buy Now, Pay Later.
A closer look at the addressed areas
The three staff-level sessions between the CFPB and the European Commission addressed specific areas:
- Buy Now, Pay Later (‘BNPL’) and Over-Indebtedness: discussions included presentations on European consumers’ over-indebtedness and the growth of the BNPL industry in both the European Union and the US, along with associated risks and legal frameworks.
- Digital Payments Access and Fraud; Big Tech Companies in Consumer Finance: topics covered regulations concerning the EU Open Banking framework, initiatives to tackle fraud in digital payments, and the role of Big Tech in consumer finance, with comparisons between the EU and US contexts.
- Artificial Intelligence: staff from both entities discussed legislation addressing AI, recent legal judgments, and regulatory frameworks pertaining to consumer finance. They also shared information on AI use cases deployed or contemplated by firms in each jurisdiction.
Mairead McGuinness, Commissioner for Financial Services, Financial Stability and the Capital Markets Union, and her senior staff have been actively involved in these discussions, particularly concerning issues within her direct competence in the European Commission.
On 20 February 2024, Director Chopra and Commissioner Reynders reaffirmed their commitment to the ongoing informal dialogue during a meeting in Brussels. They agreed to convene an annual principal-level meeting and bi-annual staff level meetings to address shared priorities and emerging issues.
