The Consumer Financial Protection Bureau (CFPB) recently issued a report coinciding with a joint hearing with the Department of Transportation. The report aims to highlight perceived issues with airline and credit card rewards programs. However, Richard Hunt, Executive Chairman of the Electronic Payments Coalition, argues that these problems are nonexistent.
Hunt criticizes the CFPB's findings, stating, "Consumers aren’t frustrated. Not even a little." He attributes the report's conclusions to political motivations supported by Senate Judiciary Committee Chair Dick Durbin and Senator Roger Marshall. According to Hunt, these politicians have been attempting to discredit the credit card industry to promote their legislation.
The CFPB's report mentions receiving 1,200 complaints about credit card rewards in 2023. Given that approximately 143 million Americans own rewards credit cards, this represents only 0.0008% of users filing complaints. Hunt questions the validity of claiming widespread issues based on such a small percentage.
Hunt also challenges the methodology behind the CFPB’s analysis, noting its vagueness and lack of transparency. "It’s impossible to tell if their themes are based in reality," he states.
Contrary to the CFPB's claims that rewards programs are too complex for consumers, Hunt cites research indicating consumer satisfaction with these programs. He notes that credit card issuers offer various reward options such as miles, cash back, and gift cards. A study from the Electronic Payments Coalition shows that people across all income levels value these rewards.
Hunt suggests that Senators Durbin and Marshall have ulterior motives for pushing this narrative. He alleges they aim to benefit corporate supporters like Target and Walmart through proposed legislation altering how credit card payments are processed.
"Rather than having their own rising prices scrutinized," Hunt asserts, "they’ve taken the approach of going after the financial system." He warns that this bill could undermine secure payment systems essential for data security.
Hunt concludes by urging consumers to oppose Durbin and Marshall’s new credit card mandates: "Tell your senator to oppose Durbin and Marshall’s new credit card mandates."
Richard Hunt emphasizes investing in new technologies and legislating national data security standards as solutions for creating a stronger payment system.