Sen. Richard Durbin, D-Ill., a known advocate for
taking on credit card companies, is proposing legislation that would shake up
the points and miles industry in the airlines. The Senator will ask Congress to approve the Protect
Your Points Act.
The bill would
substantially change frequent flyer programs. Durbin is asking, among other
things, to end the expiration dates on points and miles, and to let passengers
pay for a flight in multiple ways, including a combination of points and cash.
"U.S. airlines have been working to Protect Our
Points for years against those working to eliminate these loyalty
programs," Airlines for America said in a statement. "U.S. airlines
are transparent about these programs, and policymakers should recognize their
popularity and work to ensure that unnecessary regulation doesn't eliminate
them."
Airlines for America is the trade group for the
industry. According to the senator’s office, he would like to:
- Require
airlines to issue any changes to the service terms of frequent flyer
programs and co-branded credit cards at least one year in advance
- Require
airlines to display the financial value of points and miles within 90 days
of enactment
- Require
airlines to display airfare and add-on pricing in both dollar and points
and miles value
- Require
airlines to extend the shelf life of points and miles so they do not
expire
- Allow travelers
to pay for airfare and add-on services with points and cash
- Allow travelers
to transfer points (for free) to family members or others who are part of
the same frequent flyer program
- Allow
travelers to transfer an unlimited amount of points and miles to another
traveler's account while remaining of equal value
Oversight would be provided by the U.S. Department of
Transportation and Consumer Financial Protection Bureau.
"These programs can shape how customers interact
with airlines and many Americans reportedly have point balances substantial
enough that they amount to part of their savings," Department of
Transportation Secretary Pete Buttigieg previously wrote in a letter to
American Airlines, Delta Air Lines, Southwest Airlines and United Airlines.Bottom of Form.
Spokespeople for the DOT and the CFPB did not respond.
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