Credit card companies arre scrutinized over frequent flyer rewards (includes video story)

Airlines in the United States are back under strict watch due to the increase in frequent flyer programs linked to credit cards. For many years, companies have used point systems. U.S. Department of Transportation Secretary Pete Buttigieg, emphasized they have become “a meaningful part of our economy.” A joint hearing on Thursday morning included the Consumer Financial Protection Bureau and the U.S. Department of Transportation.

The programs regulate the number of points being offered. The collection of frequent flyer points has increased over the years, creating engagement and loyalty to specific airlines.

Such systems are now under watch. There are demands to increase award ticket transparency, lessen mile devaluation, include transferring points and miles, and notify customers of any abrupt changes to their account balances. The Consumer Financial Protection Bureau and the U.S. Department of Transportation are now involved as the business receives positive comments from Brian Kelly, the founder of travel blog “The Points Guy.” Kelly refers to credit cards as representing “big business for the major airlines.”

New ways of traveling are expanding. Deceptive practices will continue to be cautiously looked at as federal regulators continue investigations. 

Brian Diaz is a senior at FIU majoring in Digital Communication and Media with a strong focus on media production. Documentation and story production have led him to enjoy the ability to shape media to reach communities with powerful videography. After graduation, he is interested in becoming a live camera operator.