The Consumer Financial Protection Bureau (CFPB) is warning consumers about potential illegal practices by credit card companies that may devalue accrued rewards like points and airline miles. The CFPB cites issues like misleading fine print, vague contract terms, and system failures that result in consumers losing points during redemption attempts. The agency is taking action against these 'bait-and-switch tactics' with a new tool, Explore Credit Cards, designed to help consumers compare over 500 credit cards based on unbiased data.
A federal consumer watchdog is warning that certain credit card companies may be illegally devaluing accrued rewards such as points or airline miles. The Consumer Financial Protection Bureau said Wednesday that companies may violate federal law if fine print disclaimers or vague terms buried in a contract conflict with promotional language, if companies deflate the value of a customer’s accrued awards, or if system failures result in consumers losing points when attempting to redeem them.
The tool essentially provides an "apples-to-apples" comparison of options in the credit card market using data that's available to the public. The CFPB said the tool "provides unbiased, comprehensive data" for more than 500 cards. It lets customers evaluate them based on credit score range, interest rates, fees and rewards offerings.
CONSUMER PROTECTION CREDIT CARDS REWARDS FINANCIAL INSTITUTIONS BAIT-AND-SWITCH
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Americans are wasting credit card rewards on credit card debt, survey saysA new survey from NerdWallet found that 21% of Americans have used a credit card to earn rewards despite having credit card debt.
Read more »
CFPB Warns of Credit Card Reward Manipulation, Launches Tool to Help Consumers Compare CardsThe Consumer Financial Protection Bureau (CFPB) is warning consumers about credit card companies potentially devaluing accrued rewards and is launching a new tool to help consumers compare credit card rates and benefits.
Read more »
Will enrolling in a credit card debt management program hurt your credit?Certain debt relief strategies can have a negative impact on your credit — but is debt management one of them?
Read more »
How will a late credit card payment impact my credit score?Just one delinquent credit card payment could have a big impact on the health of your credit. Here's how.
Read more »
Will my credit score drop if I pay a credit card debt collector?Paying off an old debt could have an impact on your credit score — but not always in the way you'd think.
Read more »
Credit Expert Reveals Biggest Mistake With First Credit CardA credit expert with over 20 years of experience in the credit industry shares his biggest mistake when he first started using credit: only having one credit card with a low limit. This affected his credit score despite always making timely payments.
Read more »