The Consumer Financial Protection Bureau (CFPB) is intensifying scrutiny on credit card reward programs, highlighting a significant increase in consumer complaints regarding the redeemability and value of rewards. In 2023, complaints surged by 70% compared to pre-pandemic levels, prompting CFPB Director Rohit Chopra to criticize major credit card issuers for misleading marketing practices. He emphasized that consumers should receive the promised rewards, such as cashback bonuses and travel perks. However, the Consumer Bankers Association (CBA) countered that only a small percentage of credit card users report issues with rewards, asserting that complaints account for just 2% of all credit card grievances since January 2020. Despite the controversy, a majority of consumers still favor rewards cards, with 83% prioritizing perks in their credit card choices. Experts advise cardholders to maximize their benefits by understanding the terms and conditions of their rewards programs to avoid missing out on valuable opportunities.
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