The Consumer Financial Protection Bureau (CFPB) released a report after investigating complaints about credit card rewards programs, highlighting that complaints about rewards programs are centered around people who were unable to take advantage of promotions they thought they had earned.
Yahoo Finance's senior personal finance writer Kendall Little breaks down the CFPB's report and offers tips for consumers to avoid problems with these rewards programs.
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This post was written by Melanie Leal
Video Transcript
Well, in March, the Consumer Financial Protection Bureau announced it was opening an investigation into credit card rewards programs, but that was after a surge in complaints.
So what are the most common complaints here?
Yes, in May.
In fact, CFP B subsequently released a report detailing those complaints.
So, complaints about credit card rewards typically centered around people not being able to use the rewards they earned.
For some, that meant they may not have actually been eligible or been entitled to the bonus they thought they were receiving.
Or maybe their, um, rewards program devalued the rewards before they could use them.
Others found their rewards were left in limbo due to account issues, technical problems, and more.
Others had their accounts closed or closed their accounts, completely losing access to their benefits before they could use them.
We should also provide some tips to help consumers avoid these issues in the first place.
Well, I think the most important thing, and probably the most boring thing, is to read the terms and conditions.
Specifically, check the benefits and program terms.
Here you will find all the information on how to ensure you qualify for the bonus.
What purchases actually qualify for the reward?
It's all fine print that you probably don't want to read, but it's really important information that you need to know.
And secondly, you need to use rewards.
Don't let it sit in your account forever.
Then they lose their value.
So if you have a cash back card, you'll probably accumulate rewards periodically throughout the year by cashing in points or miles as you earn them, setting vacation goals, and using those rewards toward that specific goal.
What you definitely shouldn't do is leave it lying around unused, as it could become devalued or inaccessible.
