Credit Card Reward ‘Bait and Switch’ Tactics Face CFPB Scrutiny

The Consumer Financial Protection Bureau is preparing to take a closer look at credit card rewards programs, the agency’s director said.

CFPB Director Rohit Chopra on Friday said his agency is eyeing new guidance for how the Electronic Fund Transfer Act, a 1978 law governing electronic payments, applies to what he called “private digital dollars” and other digital currencies, including crypto.

In particular, Chopra said the CFPB is concerned about potential “bait and switch” tactics deployed by credit card companies to entice people into signing up for rewards plans.

“There’s a lot of concerns about misrepresentations about how those points ...