CFPB’s Issue Spotlight and Panel on Credit Card Rewards

On March 9th, the Consumer Financial Protection Bureau (CFPB) released an Issue Spotlight focusing on the intricacies of credit card reward programs. This spotlight analyzed consumer complaints surrounding rewards programs and highlighted the most common themes reported, including unexpected promotional conditions, devaluation, redemption problems, and revocation. 

In response to the findings of the Issue Spotlight, a panel discussion featuring the CFPB and key stakeholders was convened. During this panel, Director Rohit Chopra emphasized the need for Congress to enhance terms and conditions in credit card agreements. Furthermore, the Director hinted at the possibility of more aggressive policing by the CFPB as it seeks to mitigate risks to consumers and promote meaningful competition among financial institutions. 

Importantly, the focus of the Issue Spotlight was not on credit unions, and the Director rather recognized credit unions for their pivotal role in positively impacting this space.  As advocates for consumers, credit unions have a unique opportunity to continue championing transparency, fairness, and consumer protection in credit card reward programs. 

We will keep you updated with any potential impacts on credit unions as developments unfold. 

Posted in Advocacy on the Move, Regulatory Advocacy.