CFPB Hones Credit-Card Reward Complaints
Expanding its attack directly to credit-card rewards, the CFPB today issued a blog concluding that “excess” fees cause many consumers to pay more in interest and charges than for amortizing principal, compounding the pricing complexity the Bureau earlier this week argued deceives consumers and undermines effective comparison-shopping to the lower-cost options it believes smaller-card providers provide. The blog also highlights the CFPB’s work to address comparison shopping, stating that credit cards manipulate these tools to obfuscate low-cost options (see FSM Report CONSUMER56). We expect all these conclusions to take on heightened prominence as the CFPB and Department of Transportation next week hold a hearing focusing on credit cards and airline rewards.