Consumer Financial Protection Bureau (CFPB) Focuses on Credit Card Rewards Programs

Are you tired of feeling like you’re not getting the rewards you were promised with your credit cards? You’re not alone. The Consumer Financial Protection Bureau (CFPB) has noticed a 70% increase in consumer complaints regarding credit card rewards programs since before the pandemic, leading them to focus on this issue.

In a report released by the CFPB in May, common complaints from consumers about credit card rewards were highlighted. These include not receiving rewards, rewards devaluation, inability to redeem rewards, and losing rewards access. Many consumers reported feeling misled by advertised offers or frustrated by changing terms and conditions.

To help you avoid these problems with your rewards credit cards, here are a few key actions you can take:

1. Always read the card terms: Make sure to thoroughly read the terms and conditions of any credit card offer before applying. Look out for hidden requirements or restrictions that may impact your ability to earn rewards.

2. Use your points: Don’t let your points or miles accumulate without using them. Redeem them regularly to avoid devaluation and expiration.

3. Find the right type of rewards for you: If you prefer simplicity and stability, consider a cash-back credit card. If you enjoy travel rewards, opt for a card with flexible redemption options.

4. Stay flexible when you redeem points and miles: Keep your travel plans open to maximize the value of your rewards. Avoid booking during peak times or holidays, as these often result in lower redemption rates.

By following these steps, you can protect yourself against common credit card rewards issues and make the most of your rewards value. Don’t let confusing terms or changing policies get in the way of enjoying the benefits of your credit card rewards.