Consumer Financial Protection Bureau (CFPB) Investigates Credit Card Rewards Programs: Common Complaints and How to Protect Your Rewards

The Consumer Financial Protection Bureau (CFPB) is shifting its focus to credit card rewards programs due to a significant increase in consumer complaints. Since before the pandemic, there has been a 70% uptick in complaints related to credit card rewards. In response to this trend, the CFPB released a report in May spotlighting common consumer complaints and held a joint hearing with the Department of Transportation on airline rewards programs in the U.S.

During the joint hearing, CFPB director Rohit Chopra emphasized the agency’s goal of ensuring that every family receives the rewards promised to them and advocating for a fair, competitive, and transparent credit card market.

The report highlighted four common complaints regarding credit card rewards programs:

1. Not receiving rewards: Some cardholders felt misled by advertised offers and never received the rewards promised due to unclear terms and conditions.
2. Rewards devaluation: Changes in rewards programs can decrease the value of points or miles earned, making it harder for cardholders to redeem them.
3. Inability to redeem rewards: Some cardholders faced challenges redeeming their rewards due to technical issues or delays in point transfers.
4. Losing rewards access: Card issuers sometimes revoke or expire earned rewards without notice, leaving cardholders without access to their points or miles.

To protect your credit card rewards, it is essential to read and understand the card terms, use your points regularly, choose the right type of rewards for your needs, and stay flexible when redeeming points and miles.

In addition to focusing on credit card rewards programs, the CFPB is also addressing concerns related to interest rates and buy now, pay later (BNPL) companies. Regulators are working to ensure transparency and consumer protection in the credit card market.

This article was edited by Alicia Hahn and provides valuable insights into how consumers can navigate the complexities of credit card rewards programs and protect their rewards value.