Durbin introduced the Protect Your Points Act to Congress

A big shake-up may be in store for the world of points and miles.

Sen. Richard Durbin, a Democrat from Illinois and the lead author of the Credit Card Competition Act (a bill aimed at reducing the cost of swiping between credit card companies), introduced additional legislation Thursday to promote transparency in traditional and cobranded credit card programs. .

Now he wants Congress to pass his new Protect Your Points Act.

If passed as proposed, it would revolutionize frequent flyer programs, where millions of Americans collect rewards for flying, spending on credit cards and other activities. Durbin wants to see changes like eliminating expiration dates on points and miles and requiring airlines to allow travelers to pay for airfare and other programs with a combination of rewards and cash.

According to a press release from the member of parliament, the bill will regulate how airlines operate frequent flyer programs by:

• Requires airlines to issue any changes to terms of service for frequent flyer programs and cobranded credit cards at least one year in advance
• Requires airlines to demonstrate financial value of points and miles within 90 legal days, including real-time updates
• It requires airlines to display flight fees and surcharges in both dollar terms and points and miles value
• It requires airlines to extend the shelf life of points and miles so they don’t expire
• Allowing travelers to pay for airfare and additional services with points and cash
• Allowing travelers to transfer points (free of charge) to family members or others who are part of a frequent flyer program.
• Allowing travelers to transfer an unlimited number of points and miles to another traveler’s account while remaining an equal amount

The bill would give these responsibilities to the US Department of Transportation and the Consumer Financial Protection Bureau. According to the text of the bill, the additional services included include fees for seats, baggage, early boarding, lounge access and air conditioning Wi-Fi, among others.

The rule is not too far from what Transportation Secretary Pete Buttigieg was worried about — the Transportation Department launched an investigation into four major domestic airlines in early September.

“These programs could change the way customers interact with airlines and many Americans reportedly have enough points to be part of the rewards,” Buttigieg wrote in a letter to American Airlines, Delta Air Lines, Southwest Airlines and United Airlines.

Airlines for America, a trade group representing major US airlines, including the four named in Buttigieg’s letter, had the following in response to the bill.

“America’s airlines have been working to protect Our Points for years against those who are working to end these loyalty programs,” Airlines for America told TPG in a statement. “U.S. airlines are open about these programs, and policymakers should recognize their popularity and work to ensure that unnecessary regulations are not eliminated.”

When asked how this legislation aligns with the principles of the Credit Card Competition Act, a Durbin spokesperson shared, “These two bills address different issues – one improving consumer disclosure and protection in airline rewards programs and improving competition in the credit card market. Saving millions of consumers in swipe fees each year.” all.”

Critics of the CCCA warn that limiting interchange fees could impact credit card companies that rely on fees as a revenue driver and thus could threaten the existence of airline and hotel programs.

As of September 26, Durbin introduced the Protect Your Points Act, but it is not yet listed as an introduced bill on Congress.gov.

Spokesmen for the DOT and the CFPB did not respond to a request for comment.

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