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ARTICLE · 20 JUNE 2024

CFPB Spotlight On Credit Card Reward Programs Provides Learning For All Reward Program Sponsors

Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
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Frankfurt Kurnit Klein & Selz PC

Frankfurt Kurnit Klein & Selz PC

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The Consumer Financial Protection Bureau (CFPB) recently issued an "Issue Spotlight" report on credit card reward programs. The Spotlight starts off by noting that in 2023...

United StatesFinance and Banking

The Consumer Financial Protection Bureau (CFPB) recently issued an "Issue Spotlight" report on credit card reward programs. The Spotlight starts off by noting that in 2023, the CFPB received over 1,200 complaints involving credit card rewards, a more than 70 percent increase over pre-pandemic levels. While the report is specific to credit card reward programs – and the CFPB's purview concerns federal consumer financial laws – the Spotlight highlights issues that are relevant to loyalty programs of all kinds, not just those sponsored by credit card companies. Therefore, reward and loyalty program sponsors of all kinds should take note.

The Spotlight identifies four recurring themes in the complaints it received:

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This post first appeared in Frankfurt Kurnit's Focus on the Data blog (www.focusonthedata.com). It provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

Originally published by the New York Legal Ethics Reporter

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

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