ARTICLE · 22 MAY 2024

CFPB Reports Troubling Trends In Credit Card Rewards Programs

Goodwin Procter LLP

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On May 9, 2024, the Consumer Financial Protection Bureau (CFPB) issued a new Issue Spotlight regarding growing problems in the credit card rewards program industry.

United StatesFinance and Banking

On May 9, 2024, the Consumer Financial Protection Bureau (CFPB) issued a new Issue Spotlight regarding growing problems in the credit card rewards program industry.

Credit card rewards programs have become increasingly complex in recent years. Especially for credit cards with high annual fees, a key part of attracting interest comes from benefits such as receipt of airline miles or hotel points and access to exclusive lounges and loyalty status that afford premium service.

When compared to pre-pandemic numbers, the number of complaints regarding credit card rewards programs received by the CFPB in 2023 increased by more than 70%.

The Spotlight details four recurring themes that emerged from the CFPB's analysis of hundreds of these complaints.

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