Credit card rewards programs are suddenly less rewarding

The Washington Post reports:

Months before a new law takes effect restricting the credit card industry's ability to raise interest rates and charge fees, card issuers are scaling back programs that offer lucrative rewards such as frequent-flier miles and cash rebates. Now many customers have to pay additional fees or earn more points to redeem free plane tickets or claim cash-back perks.

"Consumers should understand that rewards programs are unstable right now, and a lot of the best programs are changing. And almost without exception they are changing to the benefit of the bank and the disadvantage of the cardholders," said Joe Ridout, a spokesman for Consumer Action.