US consumers are now more vulnerable to exploitation by tech giants and financial firms following President Donald Trump’s decision to fire a team of technologists from the Consumer Financial Protection Bureau (CFPB).
The move, part of a broader effort to cut federal employees, saw up to 20 technologists who investigated artificial intelligence (AI), algorithms, and confusing user interfaces sacked on February 13. These experts were responsible for ensuring fair practices in financial products and services.
The CFPB’s lack of oversight will leave many consumers without a voice to file complaints about their providers. “What happens when a senior calls their financial institution and asks for help and gets stuck in a doom loop with a robot?” asked Erie Meyer, former chief technologist at the CFPB. “I think it’s really important (to have) somebody who not only knows what AI is, but can understand what it would mean to somebody who was urgently trying to get help.”
The removal of these experts will allow companies to escape oversight on how they build products and the technology involved. This could lead to increased exploitation of consumers by tech giants and financial firms.
“The selling, breaching and misuse of data will continue to happen without legislation to ensure accountability,” said Lilian Corfal, head of the Open Technology Institute at liberal think tank New America. “This will cost ordinary Americans billions of dollars.”
Experts warn that the CFPB’s work was crucial in preventing companies from misusing consumers’ data. With the removal of these experts, consumers are now more vulnerable to tactics used to trick or deceive them.
The situation has raised concerns about the lack of oversight in the financial sector and the impact on consumer protection.
Source: https://eu.usatoday.com/story/money/2025/02/21/experts-cfpb-watchdog-consumer-risk/79465541007