Biden Administration Intensifies Scrutiny on Credit Card and Airline Rewards Programs
Federal regulators are investigating whether the costs of credit card and airline rewards outweigh the benefits to consumers amid concerns of misleading practices.
- Joint hearings by the Consumer Financial Protection Bureau and the Department of Transportation raise questions about the transparency and fairness of credit card loyalty programs.
- Officials highlight the potential financial pitfalls for consumers, with some paying more in fees and interest than the value of rewards earned.
- Regulatory scrutiny targets the rapid devaluation of points and the high interest rates charged by credit card companies.
- Critics argue that aggressive marketing and complex terms may obscure the true costs of credit, disadvantaging consumers.
- The ongoing debate could lead to new regulations aimed at protecting consumers from predatory financial practices.
American Banker 
