"The CFPB has been hearing for years about frustrations with customer service in banking - from getting trapped in phone tree doom loops to an inability to get past a bank chatbot. — Image by freepik
Anyone who's ever been frustrated by an attempt to cancel a subscription, file a health insurance claim, suss out whether a review is real or get an actual human being on the phone about a problem might be pleased to read about the Biden administration's new consumer protection efforts announced Aug 12.
"Americans are tired of being played for suckers," reads the White House fact sheet on the "Time is Money" initiative. It seeks to crack down on various and frequently deliberate forms of corporate time-wasting that consumers are forced to endure, including endless phone mazes and archaic methods for canceling gym memberships and filing claims with your insurance.
"In addition to robbing hardworking families of their valuable time and adding frustration to our daily lives, these hassles cost us money," the fact sheet reads. "When, after endless hours on hold or piles of incomprehensible paperwork, we give up pursuing a service, rebate or refund we're due, we take a hit to our pocketbooks, and companies profit."
Some parts of the initiative will be enacted immediately, while other changes and guidance will be rolled out in the coming months, the White House said. The changes do not require congressional approval - they will be carried out by federal agencies like the Consumer Financial Protection Bureau, which issued a report in June about chatbot usage.
"The CFPB has been hearing for years about frustrations with customer service in banking - from getting trapped in phone tree doom loops to an inability to get past a bank chatbot. The CFPB is looking at ways to make it easy and straightforward for consumers to get past a recording or AI and reach a human to resolve customer service issues with their financial institution," a spokesperson for the Consumer Financial Protection Bureau said via email.
Some of the highlights outlined:
- A "click to cancel" rule: The Federal Trade Commission is working on a rule to make it as easy to cancel a subscription or membership as it was to enroll in the first place. In other words, if you were able to sign up in a click, you should be able to cancel with one. The FTC is currently reviewing public comments on the proposed change.
- Submitting health care forms online: Some health insurance companies force people to print out and mail or fax claim forms. In addition to wasting people's time and shockingly valuable printer ink, it punishes people who don't own a printer or know how to use digital fax services. Department of Health and Human Services Secretary Xavier Becerra and Department of Labor Acting Secretary Julie Su published an open letter to health insurance CEOs Monday calling on them to address that. Other issues noted in the letter: Making information about prior authorisations and denials clearer, improving customer service access and ensuring compliance with the No Surprises Act on medical billing.
- Making it easier to talk to a human: The fact sheet describes "doom loops" where callers fall down endless automated customer service phone mazes with no clear way to get a human being on the line. The White House says the Consumer Financial Protection Bureau will begin a rulemaking process to make companies under its jurisdiction let callers speak to a person by pressing a button. The Federal Communications Commission and health care agencies will look into initiating similar requirements for communications and health insurance companies.
- Cracking down on fake reviews: The Internet is flooded with fake reviews that make it hard for consumers to decide what to buy. The FTC is proposing a rule to stop marketers from creating or paying for fake reviews.
- Investigating chatbots: The fact sheet notes that while chatbots can provide basic information, they are often inaccurate and "give the run-around to customers seeking a real person." The CFPB will look into whether banks using chatbots or artificial intelligence voice recordings for customer service is unlawful, and issue rules or guidance regarding how they are used by financial institutions. – San Francisco Chronicle/Tribune News Service
