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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCredit-Card Rewards Programs Examined by U.S. Consumer Bureau
By Carter Dougherty - Nov 15, 2013
The U.S. Consumer Financial Protection Bureau is examining whether customers are being misled when they sign up for complex credit-card reward programs and will mull new rules in this area.
Consumers can face detailed and confusing rules about using rewards, CFPB Director Richard Cordray said in an e-mail yesterday. We will be reviewing whether rewards disclosures are being made in a clear and transparent manner, and we will consider whether additional protections are needed.
Restrictions on card rewards programs could crimp the ability of banks to use the enticements to sign up customers. Top issuers such as JPMorgan Chase & Co. (JPM), Bank of America Corp. and American Express Co. (AXP) rely on rewards to attract and keep cardholders.
Rewards are the No. 1 reason why customers select the card, and theres almost a battle to provide the highest rewards, Jim Miller, senior director of banking services at J.D. Power & Associates, a market research firm, said in an interview.
The consumer bureaus inquiry involves the marketing of rewards programs, particularly the marquee promise of a given card, such as cash back, or redeemable airline miles, and what a customer needs to do to get it, said a person involved in the work who asked not to be identified because the effort is in an early stage.
more...
http://www.bloomberg.com/news/2013-11-15/credit-card-rewards-programs-examined-by-u-s-consumer-bureau.html
Historic NY
(37,454 posts)and thats exactly what I did pay off the credit card using the rewards.
Demobrat
(8,997 posts)I run everything I can through it to rack up points and pay it off every month. I haven't paid interest in decades, and get $100 in cash back a couple of times a year. Of course the bank still makes money because they charge the vendor 2% on every transaction and give me back 1%. Credit cards can work to your advantage when used correctly.
CountAllVotes
(20,878 posts)It started out what seemed to be ok.
If you racked up 2500 pts. you could get a $25.00 CVS card; 5000 points a $50.00 card.
Now this has *changed*.
It is now 5900 pts. for that same $50.00 card and 3,000 pts. for the $25.00 card.
Groceries give 3% back but the points are now worth less so the 3% is a scam obviously.
Same goes for their great deal on gasoline. The 5% in points you receive you still get, but they buy less as far as rewards go.
So, what is the point really?
Best to use a rewards card that doesn't change every month!
New strategy here is to charge as FEW things as possible!
Have I said how much I hate these lying pigs recently? If not, well I am saying it again now.
JUST SAY NO to these bogus "reward" cards!
& recommend!!!
geek tragedy
(68,868 posts)I would worry less about the high-end Signature level cards, which have pretty savvy customers, but rather look at cards marketed to lower income households that don't deliver on the promise of rewards.
Of course, credit card rewards in general amount to a wealth transfer from those who pay by check, cash, or debit card towards those who hold reward cards.
Response to Purveyor (Original post)
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