Senators Durbin and Marshall are proposing credit card legislation that would restrict card issuers' ability to fund rewards programs, disproportionately affecting working-class Americans who rely on these rewards to offset extra expenses during vulnerable financial periods.
Key Points
Nearly 70% of working-class American cardholders utilize rewards cards
Working-class families redeem more than one-fifth of rewards through travel, subsidizing vacation costs
Rewards accumulated by working-class families offer genuine savings, such as a 17-cent per gallon discount at the gas pump annually
Pros
Working-class Americans rely on credit card rewards to afford essentials and activities they otherwise couldn't
Rewards programs provide genuine savings for working-class households, especially during vulnerable financial periods
Cons
Proposed legislation may lead to higher costs for working-class families
Millions of Americans could lose access to credit cards entirely