Consumer Agency Targets Confusing Credit Card Rewards Programs

Consumer Agency Targets Confusing Credit Card Rewards ProgramsYou are not alone if deciphering your credit card’s rewards program seems to require a degree in mathematics.
The U.S. Consumer Financial Protection Bureau is looking into whether credit card issuers are misleading customers when they sign up for these programs.
The result could be new rules to ensure clarity and transparency when it comes to introductory cash-back offers, accumulating points, redemption of rewards and other policies.
Consumers can face “detailed and confusing rules” about using rewards, CFPB Director Richard Cordray said in an e-mail Thursday to Bloomberg.
“We will be reviewing whether rewards disclosures are being made in a clear and transparent manner, and we will consider whether additional protections are needed,” Cordray told Bloomberg.
Top card issuers, such as Chase, Bank of America, Citi and American Express, rely heavily on rewards to attract and keep card costumers.
The CFPB review involves the marketing of rewards programs, particularly the initial teaser of promising cash back or redeemable gifts, such as airline miles.
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