06:47 AM EST, 12/18/2024 (MT Newswires) -- The US Consumer Financial Protection Bureau has reportedly issued a warning to credit card companies that devaluing or canceling rewards points, cash back, or miles earned by cardholders may violate federal law, Reuters reported Wednesday, citing the regulator's policy circular shared with other regulators.

The agency reportedly warned that prohibitions could be deemed unfair, deceptive, or abusive practices, potentially leading to penalties.

With rewards cards making up three-quarters of general-purpose credit cards in 2022, the CFPB reportedly said that many consumers often choose cards based on the value of these benefits.

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