The Consumer Financial Protection Bureau (CFPB) announced major actions today to protect consumers from illegal credit card practices and help people save money on interest and fees. In a circular to other law enforcement agencies, the CFPB warned that some credit card companies operating rewards programs may be breaking the law, including by illegally devaluing rewards points and airline miles. The CFPB also published new research finding that retail credit cards—which typically offer store-specific rewards and loyalty programs—charge significantly higher interest rates than traditional cards. The CFPB further launched a new tool, Explore Credit Cards, to help consumers find the best credit card rates across both rewards cards and traditional cards. This first-of-its-kind tool enables consumers to compare more than 500 credit cards using unbiased, comprehensive data.
One of my cards has a cash back reward up to 5% in categories. I often pick groceries as one, however I recently got a letter that discount grocery stores will be excluded.
I hope the CFPB loosens a couple teeth.
what makes a store discount? is it not going to apply to sale items to?
Walmart was name dropped in the letter, but I imagine grocery outlet and the like are also included.
The ambiguity works in the bank’s favor as they have an excuse to deny whatever they say applies.
I’m not sure how much they think they can get done in the last month of their existence before Musk shuts down the entire Bureau.
