Millions of renters have turned to Bilt, drawn by the enticing promise of earning rewards points on rent payments through a credit card. The innovative approach has made Bilt a popular choice among those looking to maximize the perks of their monthly expenses.
However, this fast-rising fintech firm is now under the microscope of one of Washington’s most influential consumer advocates. Customers have voiced concerns over payment glitches and delayed transactions, leading to growing dissatisfaction with Bilt’s services.
Senator Elizabeth Warren has initiated an investigation into Bilt’s rewards program, known as Bilt Rewards. She is seeking clarity and accountability for what she terms as widespread failures linked to the company’s recent overhaul of its rewards system.
A prominent figure in the Senate Banking Committee, Senator Warren, has addressed a letter to Bilt’s CEO, Ankur Jain. She is pressing the company to disclose the reasons behind the surge in payment issues that followed the rewards program’s revamp earlier this year.
Bilt gained a devoted following by offering renters the chance to accumulate travel points on their rent without any extra charges. This appeal was bolstered by the launch of new card versions in February, after Bilt’s partnership with Wells Fargo concluded sooner than anticipated.
After the transition, customers began flooding social media with complaints about delayed rent payments, duplicate charges, missing transactions and difficulty reaching customer service representatives.
On Reddit, dozens of threads have surfaced featuring frustrated customer complaints, with one user alleging they were charged twice for rent while another said they spent four days unsuccessfully trying to reach a Bilt representative to resolve payment issues.Â
One commenter echoed the frustrations, writing: ‘I have the same issue. I paid my rent via PayPal, it failed twice and used my backup credit card instead. Now I’m stuck with a transaction fee and no help from customer support.
Millions of renters have flocked to Bilt for one reason: earning airline miles and rewards points simply by paying rent
‘To top it all off, the Bilt iMessage support is useless and sassy – to the point it angers you. F Bilt. I’m done with this BS,’ wrote the user.
‘Bilt’s systems appear to have failed many customers attempting to make rent and mortgage payments,’ Warren wrote in her letter.
Warren is requesting detailed information about how many consumers were affected, how long issues persisted and whether artificial intelligence chatbots were improperly used in place of human customer service agents during the disruption.
The probe comes as fintech rewards programs increasingly blur the line between banking, housing and consumer finance – while regulators grow more concerned about how rapidly expanding startups handle customer money.
A Bilt spokesperson acknowledged the rocky rollout, saying the company experienced ‘higher-than-expected demand’ during the transition and admitted some users experienced ‘gaps in service that are simply unacceptable to us.’
The company said it has since expanded customer service operations and resolved outstanding transition-related problems.
‘Our members have been our priority since day one. While the transition to the Bilt Card 2.0 in February represents an even more exciting future that offers our membership richer rewards and greater flexibility, the transition also attracted unexpectedly high demand, and some of our members experienced gaps in service that are simply unacceptable to us,’ a Bilt spokesperson told the Daily Mail.
‘In response, we increased our customer service capabilities to address this and proactively communicated with any impacted members. All outstanding issues relating to the card transition in February have been addressed and resolved.
‘Should any member ever have an issue we encourage them to contact Bilt, as we will do everything we can to make it right.’
Bilt first launched in 2021 and quickly became one of the hottest names in personal finance by offering renters something that had rarely existed before: The ability to earn valuable credit card rewards on monthly rent payments.
Traditionally, landlords charge processing fees of 2 percent to 3Â percent for credit card payments, making rent rewards impractical for most consumers.Â
Sen. Elizabeth Warren has launched an investigation into Bilt Rewards
The Massachusetts Democrat sent a letter to Bilt CEO Ankur Jain (pictured) asking the company to explain ‘what prompted the eruption of payment snafus’ following a major overhaul of its rewards card earlier this year
Bilt’s model eliminated those fees for users, helping attract more than a million cardholders in its first 18 months.
The company’s popularity exploded particularly among younger renters and travel enthusiasts eager to collect airline miles and hotel points from their biggest monthly expense.
But the business model has also drawn scrutiny.
Reports previously surfaced that Wells Fargo – Bilt’s original banking partner – struggled to profit from the card because many customers paid their balances in full every month rather than carrying interest-bearing debt, which is traditionally how credit card issuers make money.
The original Bilt Mastercard had no annual fee and offered one point per dollar spent on rent, alongside bonus rewards for dining and travel.
However, some users complained that the company’s newly revamped cards introduced more complex rewards structures and annual fees on certain products.
The controversy also arrives at a politically sensitive moment for consumer finance oversight. Warren said she was seeking answers partly because of what she described as weakened enforcement at the Consumer Financial Protection Bureau – the agency she helped create following the 2008 financial crisis.
The senator has recently expanded scrutiny of credit card companies more broadly, including investigations into so-called ‘junk fees’ linked to sports betting transactions and cash advance charges.
Bilt first launched in 2021 and quickly became one of the hottest names in personal finance by offering renters something that had rarely existed before: the ability to earn valuable credit card rewards on monthly rent payments (stock image)
Despite the criticism, Bilt has continued expanding aggressively beyond rent payments.
The company recently launched a first-of-its-kind program allowing homebuyers to earn rewards points when purchasing a house – offering one point for every $2 of a home’s purchase price when buyers use participating real estate agents.
For example, a $400,000 home purchase could generate as many as 200,000 rewards points redeemable for flights, hotels or dining experiences.
Bilt has also rolled out affordability tools aimed at helping renters estimate what homes they may be able to buy based on their monthly rent payments and local housing costs.
The broader appeal reflects how rewards programs have become increasingly important to consumers squeezed by high housing costs, inflation and elevated mortgage rates.
Average US rent remains above $2,000 a month nationally, according to Zillow data, while the average 30-year fixed mortgage rate is still hovering near 7 percent, dramatically increasing the cost of homeownership compared with just a few years ago.
But for many consumers, the recent payment issues have overshadowed the perks.