CFPB Warns Credit Card Issuers Over Deceptive Rewards Practices

The federal agency highlights illegal tactics like devaluing rewards, hidden terms, and high retail card interest rates, launching a tool to empower consumers.

The Consumer Financial Protection Bureau (CFPB) warns that credit card companies may be breaking federal law by devaluing rewards points, canceling earned rewards, or burying terms in fine print.
The CFPB criticized store-branded credit cards for higher average interest rates, with 90% of retail cards carrying APRs above 30%, compared to 38% of general-purpose cards.
Consumers have reported significant issues with redeeming rewards, including technical failures and vague or hidden contract terms that obstruct access to promised benefits.
To address these concerns, the CFPB launched the 'Explore Credit Cards' tool, allowing users to compare over 500 credit cards based on unbiased data on fees, rates, and rewards.
The agency emphasized its commitment to promoting competition in the credit card market and protecting consumers from deceptive 'bait-and-switch' practices.