How much can CC issuers change rewards?

[Anonymous]

Hello, couldn't find much in search results, interested to hear: how much can (or have) credit card issuers ever change the rewards offered on a credit card? For instance, the headline rewards structure on Barclays Uber is 4% restaurants/bars, 3% travel, etc. - has an issuer ever just arbitrarily said, "Guess what, you're getting 3% and 2% now"?

I've definitely seen nibbling around the edges on things like the peripheral benefits (Citi recently trashed price protection & other things) -- or, in the case of cards that earn "points" instead of a percent cashback, devaluing the points as it pertains to redemption options.

But once you've got something like Uber or Chase Freedom Unlimited that offers in no uncertain terms a % cashback on certain purchases, is that pretty much locked in for life? Any examples of banks that have totally changed the hook that got you to sign up in the first place? Would there be any sort of consumer protections or legal remedy if that were to occur?

[gdale6]

They can be canceled at any time says so right in the T&Cs. Whether or not a large bank with a reputation like Chase would do so is another question. Barclays changed the Sallie Mae in 2017 and nerfed it to a junk card that a 2% for all made useless.

[Anonymous]

Yes, in reading the information given with each new card ... it seems that the lender has a blank check on how they handle rewards. The credit card act does not get involved with the rewards and lenders may eliminate at any time.

Back in the day, rewards were few and far between, it was all about having the ability to charge a purchase and pay over time at a high Apr rate generally. Rewards are a more modern offering.

[kdm31091]

There are no legal or consumer protections regarding reward programs. Issuers are free to change them at their discretion. It does happen and especially with Barclays as the example, they aren’t afraid of nerfing reward programs. But any issuer can and does change them periodically.

The credit card market is fluid and benefits generally change, sometimes for the better and sometimes not. But there is no recourse if the issuer changes your reward program.

[staticvoidmain]

They can do whatever they want. I think it's a question of if they care about their credibility.

[Anonymous]

@staticvoidmain when you look at all of the rewards changes by several lenders of late, I really wonder if they sweat credibility? From my view point, not much.

The old adage: " ...one door shuts and another door opens ..." for the consumer. Another words, we can accept it or find a new credit card provider or so it seems.

[kdm31091]

I think the market is just fluid and there's never a guarantee of the benefits being permanent, so I don't think it's a credibility issue. If you look at cards available 10 years ago, almost none of them are the same as what is available now. There's competition, changes in consumer spending patterns, etc and rewards programs slowly change along with that.

As a consumer, it's easy enough to just switch to a different bank/product if the rewards do change and no longer meet your needs. You have no obligaton to keep using a bank/product forever.

[Anonymous]

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@gdale6 wrote:

They can be canceled at any time says so right in the T&Cs. Whether or not a large bank with a reputation like Chase would do so is another question. Barclays changed the Sallie Mae in 2017 and nerfed it to a junk card that a 2% for all made useless.

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A little less dramatic, but of similar impact to some, US Bank sometimes removes categories on the Cash +.   So, if you got it for 5% on charities (or home improvement or airfair etc) you would find (with at most 3 month notice) that the card may have become almost useless for you.