EPC Statement on CFPB’s Politically-Motivated, Misleading Credit Card Circular

WASHINGTON, DC – Electronic Payments Coalition Executive Chairman Richard Hunt today called the Consumer Financial Protection Bureau’s circular, which was purposefully released under embargo to avoid public scrutiny, on credit card reward programs politically-motivated and out of touch with the realties of how American families rely on these valuable reward benefits to fight record inflation.

“We are in the closing acts of the 2024 Durbin-Marshall Retribution Tour, fully aided by the Biden Administration. Americans of all incomes depend on credit card rewards, especially during the holidays to help fight inflation and cover necessary expenses ranging from gas to groceries to trips to visit loved ones.

“If regulators truly wanted to help Americans, instead of embarking on a politically motivated witch hunt to repay Senators Durbin and Marshall’s largest donors by attacking the benefits nearly every household and small businesses rely on, they would focus on the corporate mega-stores and grocery conglomerates that exorbitantly hiked prices on consumers and manipulated the supply chain to hurt small businesses and undercut their competition during the pandemic.” 

The CFPB’s so-called investigation into credit card rewards started after Senators Dick Durbin (D-Ill) and Roger Marshall (R-Kan.) weaponized the Bureau and Department of Transportation following opposition to their legislation imposing new mandates on Americans’ credit cards.

In fact, the CFPB’s press release shows how competitive the credit card market is, noting consumers have “more than 500 credit cards” to choose from and the Bureau comparison tool highlights the benefits credit cards offer. 

Nearly 80% of Americans across all income levels reported having rewards cards and, according to data from Airlines for America, approximately 15 million flights are taken each year with cobranded cards. These flights generate $23 billion in economic activity each year.

The CFPB’s report issued this May found 1,200 complaints related to reward programs out of a total 253 million reward cards. This same report also shows credit card rewards actually increased in value.