The following content is electronic payment federation.
Millions of American households rely on credit card rewards to cover everyday necessities like groceries, gasoline, and back-to-school supplies.
But earlier this month, the Biden administration’s Consumer Financial Protection Bureau (CFPB) and Department of Transportation (DOT) held a joint hearing to scrutinize credit card and airline rewards programs. This hearing was not about protecting American consumers, but about imposing new government mandates on credit cards, including Sens. Roger Marshall (R-KS) and Dick Durbin (D-Kan.). -Illinois) aims to weaponize the federal government against American companies that oppose its efforts.
Supporters of the bill are aligned with the Biden Administration in pushing a harmful credit card bill that would only benefit giant corporations like Walmart, Target, and Amazon. If passed, the bill would likely limit card issuers’ ability to fund rewards programs that Americans of all income levels rely on, especially during a time of record inflation.
To counter this narrative, the CFPB claims that politically motivated report Along with their retaliation hearings.
Although the CFPB claims that points and programs in general are being devalued, the report disconcertingly finds that the average value of rewards earned by consumers increased between 2019 and 2022. In particular, he admits that Additionally, it highlights that consumers earn more than $40 billion in benefits from major issuers’ common services. In 2022, the purpose of credit cards will increase, and from 2019 he will increase by more than 50%.
Although the CFPB claims these benefits are worthless and underutilized by consumers, American consumers, especially low-to-moderate income (LMI) households, certainly value these benefits. We are using.Recent study Reported loyalty card ownership has increased across all income levels over the past four years, with particular growth among low-income cardholders (62.2% to 69.2%).
The CFPB also argues that while rewards programs are complex, in practice most cardholders find them easy to understand and tend to take full advantage of them. report Research shows that 96% of cardholders find their rewards program to be very or somewhat valuable, making rewards cards one of the most popular products in the financial industry. I understand.
Finally, the CFPB report argues that the incentive program does not justify its costs. analysis According to a report from the American Bankers Association (ABA), card rewards are available, valued and well understood by consumers of all income levels.
So what is the truth?
After the hearing, conservative leaders spoke out against Sens. Durbin and Marshall’s decision to weaponize the CFPB. They accept this partnership for what it is. It’s retaliation against American companies that rightly oppose new government mandates regarding credit card mechanisms.
It’s time to stand up to Senators Durbin and Marshall and their administration allies against their blatant attempt to punish those who disagree with this harmful bill.
