The US Consumer Financial Protection Bureau (CFPB) has issued a warning to credit card companies not to devalue or cancel rewards points, cash back, or miles earned by customers. The agency stated that this practice may be considered unfair, deceptive, and abusive, and could result in fines.
As of 2022, three-quarters of all general-purpose credit cards are rewards cards, with many consumers choosing which card to apply for and use based on the rewards offered. However, industry groups have reacted negatively to the CFPB’s stance, accusing it of chasing headlines and tarnishing a popular product.
The American Bankers Association has disputed this claim, stating that complaints about credit card rewards are “extraordinarily uncommon”. The CFPB is expected to take a different approach to enforcement and regulation under the incoming administration, which may lead to increased scrutiny of credit card companies’ practices.
Source: https://www.reuters.com/business/finance/us-watchdog-warns-credit-card-issuers-not-devalue-rewards-2024-12-18