WASHINGTON — The American Bankers Association is calling on the Consumer Financial Protection Bureau to withdraw a series of guidance and statements targeting credit-card rewards programs, calling the agency’s concerns “unfounded” and arguing the rules threaten popular rewards offerings for consumers.
In a letter to CFPB Acting Director Russell Vought, ABA President and CEO Rob Nichols demanded the Bureau retract its December 2024 “Rewards Circular” and an associated press release, a May 2024 “Credit Card Rewards Issue Spotlight,” as well as a CFPB-backed statement in support of a U.S. Department of Transportation inquiry into airline-card rewards.
‘Bait & Switch’
The CFPB’s guidance — originally issued under former Director Rohit Chopra — had warned that some credit-card issuers may be violating consumer-protection laws by devaluing rewards points, adding hidden conditions, or blocking consumers from redeeming promised rewards, actions the bureau likened to “bait-and-switch” tactics.
But the ABA says those concerns do not align with actual data. In its letter, the trade group notes that complaints about rewards programs accounted for just 0.09% of all grievances submitted to the CFPB — a tiny fraction it argues does not support labeling the market “problematic,” according to the American Bankers Association.
‘Clearly Understood’
“Credit card rewards programs are widely accessible, valuable and clearly understood by consumers across all income levels,” the letter stated.
The ABA added that by issuing what amounts to enforceable rules without public notice and comment — as required under the Administrative Procedure Act — the CFPB has undermined regulatory
The CFPB did not immediately respond publicly to the ABA’s letter.
