Credit card and airline rewards are incredibly popular among Americans, but Biden administration officials worry aggressive marketing practices and the dominance of large players in the industry may be harming competition and consumers.

The Consumer Financial Protection Bureau (CFPB) and the Department of Transportation questioned industry executives and consumer advocates during a joint hearing Thursday on the impact of and issues facing these rewards programs, which Transportation Secretary Pete Buttigieg called an "important part of our savings.”

There are around 550 million credit cards in circulation in the U.S., and “credit card rewards take center stage in the industry's marketing blitzes,” CFPB Director Rohit Chopra said during his opening remarks.

Airlines and credit card companies encourage customers to sign up for cards by dangling large points packages for new sign-ups, which can add up to hundreds of dollars, as well as other perks including airport lounge access.

But Chopra said the agency’s initial review of “all the fine print” found issuers can “quickly and dramatically devalue those points” by making it more difficult to redeem points, limiting redemption options........

© The Hill