The Consumer Financial Protection Bureau (CFPB) issued a circular addressing whether credit card issuers or their partners can violate the law by lowering the value of rewards or making it hard for consumers to redeem them. According to the CFPB, such actions might be unfair, deceptive, or abusive, especially if rewards are reduced, canceled, or denied due to unclear conditions. The circular also warns that technical issues affecting the redemption of rewards could be considered unlawful. This guidance aims to ensure that financial practices are fair and transparent for consumers.
Simple Explanation
The CFPB says that companies giving credit card rewards shouldn't make it tricky for people to use their rewards, because that's unfair and sneaky. They want to make sure that people get what they were promised when they save up points.