Credit card companies can no longer quietly devalue your rewards points

The Consumer Financial Protection Bureau has clarified that credit card companies can break the law if they or their partners reduce the value of rewards points or make it harder to use them. This means card issuers must now be more transparent and consistent with how they manage rewards programs, or face legal action.

For years, credit card companies could change the value of rewards points or add new restrictions without much consequence. This often meant consumers lost value on points they had already earned. This new guidance means the CFPB can now take action against companies that use these tactics, shifting the risk of devaluation from the consumer back to the issuer.