WASHINGTON—NAFCU and CUNA joined with a group of other financial services trade groups in a letter to Congress, urging lawmakers to reject the latest effort of Senators Dick Durbin (D-IL) and Roger Marshall (R-KS) to attach the Credit Card Competition Act (CCCA) as an amendment for consideration to the fiscal year 2023 National Defense Authorization Act (NDAA).
Sen. Durbin used the same tactic when he attached the original Durbin Amendment to the Dodd-Frank Act in 2010, according to NAFCU.
In addition, the trade group said the senators are also attempting to use the NDAA as a vehicle to include a study on the impact of interchange on sales to soldiers and their families at base commissaries and exchanges as way to tie the issue into the NDAA.
The Senate is slated to begin debate on amendments to the NDAA on Oct. 11, although no votes are expected until November. Still, the action “could put the interchange issue on the table as Senators negotiate a Senate package and a final compromise with the House,” NAFCU stated.
‘Non-Germane’ Amendments
The letter expresses opposition to both of these efforts, arguing, “These non-germane amendments will rob military families of their credit card rewards, reduce the availability of safe credit, and undermine the nation’s data security.”
Others signing the letter: the American Bankers Association, the Association of Military Banks of America, the Bank Policy Institute, the Consumer Bankers Association, the Defense Credit Union Council, the Electronic Payments Coalition, the Independent Community Bankers of America and the National Bankers Association.
Cornerstone League Joins With Other Groups in Letter
Separately, the Cornerstone League has joined with other associations in sending a letter to all members of the Texas delegation in opposition to the credit card bill.
Cornerstone’s Texas advocacy arm, the Texas Credit Union Association, joined Independent Bankers Association of Texas, Credit Union Coalition of Texas, and Texas Bankers Association in presenting a unified opposition to the Credit Card Competition Act of 2022, the league said.
The letter argues the legislation is “anti-free market legislation that creates a government-mandated system for private contracting entities.” The letter seeks to counter claims by the legislation’s supporters that it will lower credit card processing fees, saving merchants and consumers money, according to the league.
The Credit Card Competition Act was introduced in July by Senators Dick Durbin (D-Ill.) and Roger Marshall (R-Kan.), with a companion bill introduced in the House by Reps. Peter Welch (D-VT) and Lance Gooden (R-TX).
“…We now have more than 10 years of experience showing that all banks and credit unions – regardless of asset size – have been negatively impacted by the Durbin amendment’s transfer of debit routing decisions from banks and consumers to merchants,” the letter reads.
‘Misguided Pieces of Legislation’
Added Jim Phelps, EVP and chief advocacy officer with the Cornerstone league, “The Credit Card Competition Act and the Welch-Gooden Bill are misguided pieces of legislation that will do much more than hurt consumers. The legislation not only will lead to retailers choosing less secure networks and putting consumers’ data privacy at risk, but it will also place unnecessary burdens on financial institutions.”
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