The Consumer Financial Protection Bureau today released a report identifying what it said were four common criticisms about credit card rewards programs made by consumers who filed complaints with the bureau. The report was released the same day the CFPB held a joint hearing with the Department of Transportation on credit card and airline rewards programs.
The CFPB received more than 1,200 complaints involving credit card rewards in 2023, according to the report. (By contrast, the American Bankers Association notes that eight in 10 people have at least one credit card with rewards, with 88% saying in a Morning Consult survey that they value their rewards.) The bureau analyzed hundreds of complaints and identified what it said were four recurring themes. First, consumers fail to receive rewards when financial institutions “impose vague or hidden conditions.” Second, consumers lose benefits that they previously earned when issuers and merchants devalue rewards. Third, consumers face obstacles in receiving their preferred redemptions when companies fail to quickly resolve rewards-related issues. Finally, consumers suddenly lose rewards when issuers unilaterally revoke previously earned balances.
