Airline frequent flyer plans subject of national hearing on ‘unfair or false methods’

The U. S. A common hearing on airline frequent flyer programs may be held on Monday at the Department of Transportation as part of an investigation into possible unfair or deceptive methods, the company announced. The Consumer Financial Protection Bureau will host the hearing on May 9 and the emphasis will be on cobranded airline credit cards, according to the organization. It may talk about different travel laws and effects. Need more aircraft reports? Sign up for TPG’s completely fortnightly Aviation email. The DOT confirmed to TPG that it was meeting with aircraft representatives in late December to talk about different loyalty program topics and “gathering more information on this issue.” We intend to thoroughly examine concerns about loyalty programs and exercise our authority to investigate flights for dishonest and unfair practices that harm passengers as necessary,” the DOT told TPG in a statement at the time. The organizations used the upcoming receiving as part of its fact-finding work on Monday, according to Square and CFPB representatives. The agencies said in a declaration that the mutual hearing is an opportunity for DOT and CFPB to gather more information to determine whether further action is necessary to maintain fair competition in these industries and a fair and open experience for passengers and cardholders. According to reports in December, the accountability practices surrounding the ordering of honor tickets, the weakening of miles over time, the generalisation of points and miles, and the type of notice given to customers when making changes to the system are among the issues being looked into. The CFPB, meanwhile, is looking into “whether credit card issuers are following through on promises of rewards, points, and miles to draw in consumers and sell more credit cards,” Monday’s statement said. A panel discussion will take place at the hearing, which will be moderated by Transportation Secretary Pete Buttigieg and CFPB Director Rohit Chopra. Several airline and banking industry representatives will serve as panelists, including :Scott DeAngelo, executive vice president and chief marketing officer, Allegiant AirMorgan Harper, director of policy and advocacy, American Economic Liberties ProjectAndrew Grimm, president and CEO, Apple Federal Credit UnionSara Nelson, international president, Association of Flight AttendantsLukas Johnson, chief commercial officer, Breeze AirwaysErin Witte, director of consumer protection, Consumer Federation of AmericaRobert Patrick Cooper, senior vice president and general counsel, OneUnited Bank Notably, no representatives from the largest U. S. participating airlines or their cobranded credit card issuer partners. Get caught up: DOT looking into unfair practices in frequent flyer programs for airlines Delta Air Lines, for instance, has said that nearly 1 % of the U. S. GDP is spent on its cobranded credit cards. The airline made$ 1. 7 billion from the cobranded credit card agreement with American Express in the first quarter of this year. In 2020, during the peak of the COVID-19 pandemic, United Airlines used its MileagePlus loyalty program to secure a$ 5 billion loan, valuing the program at nearly$ 22 billion. Related reading: