Chopra also discussed the bureau's recent proposals, such as removing medical debt from credit reports and setting up a registry to track corporate repeat offenders of consumer laws. He addressed concerns about the growth of nonbanks and fintechs, and the use of artificial intelligence in the financial sector. Chopra expressed concern about the potential for fraud and the weaponization of personal data, as well as the impact of foundational AI models on financial stability.
Key takeaways:
- Rohit Chopra, director of the Consumer Financial Protection Bureau (CFPB), defended the bureau's funding structure during a Senate Banking Committee hearing, countering a new argument that the CFPB can only be funded when the Federal Reserve earns a profit.
- The CFPB has recently proposed and finalized several rules, including one to remove medical debt from credit reports and another to set up a registry to track corporate repeat offenders of consumer laws.
- Chopra also addressed the growth of nonbanks and fintechs, expressing a desire to work with Congress to develop more robust oversight.
- He expressed concern about the potential misuse of artificial intelligence in the financial sector, particularly the potential for fraud and the weaponization of personal data.