Holding Airlines Accountable
Transportation Department takes steps to protect airline customers
Long delays. Cancelled flights. Sleepless nights on airport benches.
Flying is not always a picnic.
Earlier this year, the U.S. Department of Transportation took steps to ensure customers receive some basic benefits - such as automatic refunds for flights that are cancelled or delayed and guaranteed lodging in certain circumstances.
Now, the DOT is taking on ever-changing airline rewards programs.
“Points systems like frequent flyer miles and credit card rewards have become such a meaningful part of our economy that many Americans view their rewards points balances as part of their savings,” said U.S. Transportation Secretary Pete Buttigieg. “These programs bring real value to consumers, with families often counting on airline rewards to fund a vacation or to pay for a trip to visit loved ones. But unlike a traditional savings account, these rewards are controlled by a company that can unilaterally change their value. Our goal is to ensure consumers are getting the value that was promised to them, which means validating that these programs are transparent and fair.”
Mortgage Lender Fined for Deceptive Practices
NewDay USA was fined $2.25 million by the Consumer Financial Protection Bureau (CFPB) for deceptive loan pricing. The company presented misleading refinancing options to military borrowers using the VA loan program.
“NewDay USA baited veterans and military families into cash-out refinance mortgages by hiding the true costs of these loans,” said CFPB Director Rohit Chopra. “NewDay USA’s misconduct has no place in the VA home loan program.”