The Consumer Financial Protection Bureau issued a circular warning that some credit card companies operating rewards programs may be breaking the law.
CFPB targets credit card reward programs
December 19, 2024 / By ICBA
The Consumer Financial Protection Bureau issued a circular warning that some credit card companies operating rewards programs may be breaking the law.
The Consumer Financial Protection Bureau issued a circular warning that some credit card companies operating rewards programs may be breaking the law.
Details: The CFPB’s circular says companies may violate restrictions on unfair or deceptive acts or practices under the Consumer Financial Protection Act by:
Devaluing earned rewards.
Hiding the conditions for earning or keeping rewards.
Failing to deliver promised benefits.
More: The CFPB also:
Published research that says retail credit cards that offer store-specific rewards and loyalty programs charge significantly higher interest rates than traditional cards.
Launched the Explore Credit Cards tool to help consumers compare credit card rates across rewards and traditional cards.
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