US Senators Call for Action on Airline Loyalty Program Devaluations

Two U.S. senators, Dick Durbin and Roger Marshall, are investigating alleged "unfair and deceptive practices" in airlines' frequent flyer and loyalty programs. They have asked the U.S. Department of Transportation and the Consumer Financial Protection Bureau to address concerns about changing point systems, devaluing points, and the ability of airlines to strip consumers of rewards without notice. The senators also highlighted the high cost of purchasing points and transaction fees for transferring points to partners. This effort is part of their Credit Card Competition Act, which aims to inject more competition into the credit card industry. Critics of the bill worry that it could lead to decreased revenue from interchange fees and potentially scale back or discontinue rewards programs.