The Biden administration has launched a new “Time is Money” initiative to address corporate practices that waste consumers’ time and money. The multi-agency effort aims to simplify processes for canceling subscriptions, getting refunds, submitting insurance forms online, and accessing quality customer service. Neera Tanden, White House domestic policy advisor, said companies are delaying services or making it difficult for customers to cancel, allowing them to hold onto consumers’ money longer.
The Consumer Financial Protection Bureau (CFPB) will implement rules to address customer service “doom loops” and ineffective chatbots used by some financial institutions. The Federal Communications Commission (FCC) will investigate whether the CFPB’s proposed customer service requirements should extend to phone, broadband, and cable providers. This inquiry will consider adopting requirements similar to the Federal Trade Commission’s (FTC) proposal mandating that companies make canceling subscriptions as easy as signing up.
The initiative also calls on health insurance companies to allow policyholders to submit claims online.
Consumer protection initiative targets delays
Letters from the Department of Health and Human Services and the Department of Labor will urge health insurance companies and group health plans to take actions to save people time and money when interacting with their health coverage.
Some components of the “Time is Money” initiative build on existing efforts, such as a Department of Transportation rule requiring airlines to automatically issue refunds and an FTC proposal targeting companies that use deceptive customer practices. A senior administration official said none of these actions will require congressional approval. “This is not about shaming large corporations,” the official noted.
“The ‘Time is Money’ initiatives represent a new frontier of consumer protections.”
As Vice President Kamala Harris prepares to unveil her presidential campaign’s economic policy plans, broad consumer protection efforts like “Time is Money” may advance the administration’s consumer protection mandate in new ways. Tanden said, “It took one or two clicks to sign up. But now, you have to go in person or wait on hold for 20 minutes just to opt out,” illustrating many consumers’ frustrations.
The initiative aims to bring relief by streamlining processes and making it easier to manage services and subscriptions.
