Statement of CFPB Director Rohit Chopra Regarding the Transportation Department's Probe Into Airline Rewards Programs

WASHINGTON, D.C. - Today, the U.S. Department of Transportation initiated an inquiryinto the rewards programs of the four largest U.S. airlines' rewards programs, aimed at protecting consumers from potential unfair, deceptive, or anticompetitive practices. Consumer Financial Protection Bureau Director (CFPB) Director Rohit Chopra released the following statement:

"Secretary Buttigieg has launched an important inquiry into the points and rewards programs of major airlines. This is a key step to prevent deceptive devaluation tactics that can plague these alternative currencies held by tens of millions of families.

"Airline valuations are increasingly driven by their points programs and lucrative partnerships with credit card companies, and Americans are paying high interest rates and fees to participate in these programs-yet these tempting points and rewards programs are often depreciated or changed with little notice. The CFPB will continue to scrutinize the relationship between big credit card companies and big airlines."

In May, the Consumer Financial Protection Bureau and the U.S. Department of Transportation jointly hosted a hearing on airline and credit card rewards programs. Members of the public heard from CFPB Director Rohit Chopra and Secretary Buttigieg, who moderated a discussion with industry representatives, labor leaders, and consumer advocates about competition issues and challenges that consumers are experiencing with airline rewards and credit card rewards programs. In conjunction with the hearing, the CFPB also issued a new report finding consumers encounter numerous problems with credit card rewards programs.