US and European authorities have initiated informal discussions regarding consumer financial protection matters, focusing on the growing influence of Big Tech in payment services, the utilization of artificial intelligence (AI) in lending practices, and the emergence of buy now, pay later (BNPL) models.

Representatives from the European Commission and the Consumer Financial Protection Bureau (CFPB) have engaged in meetings to address these three contentious "priority areas," aiming to exchange expertise, promote best practices, and synchronize regulatory approaches.

The popularity of BNPL has surged on both sides of the Atlantic in recent years, prompting concerns about escalating levels of indebtedness, a trend expected to continue over the next decade, according to the European Commission.

Simultaneously, regulators in the US and Europe have been actively responding to the growing involvement of Big Tech companies in the financial sector, particularly in payment services. Antitrust apprehensions have been raised by both the European Commission and the CFPB regarding Apple's digital wallet.

Discussions on AI have centered on understanding the variations and resemblances in legal and regulatory frameworks concerning consumer finance. Officials have shared insights into the types of AI applications and automated decision-making practices deployed by firms in their respective jurisdictions.

In a joint statement, CFPB Director Rohit Chopra and EC Commissioner Didier Reynders emphasize the importance of US-EU collaboration in addressing common issues spanning financial firms, products, consumer trends, and risks. They underscore the need to uphold consumer privacy, foster competitive consumer finance markets, combat fraud and manipulation, and ensure consumers have avenues for redress in case of mishaps.