WASHINGTON – The House Financial Services Committee has passed Committee Chairman Jeb Hensarling’s (R-TX) Financial CHOICE Act, which contains a number of regulatory relief provisions that credit unions back. But the legislation also contains a number of items the credit union trade groups have called “concerning.”
The Dodd-Frank Act replacement bill passed by a vote of 34-26.
“It’s good news that we’re seeing regulatory relief legislation move forward, and the Credit Union National Association will continue our engagement with policymakers and staff as the process continues," said CUNA President/CEO Jim Nussle in a statement. “During the markup, several committee members specifically cited the negative effects that overly broad rules stemming from the Consumer Financial Protection Bureau have had on credit unions and their members, so our message is getting out there. We’ll need our leagues, credit unions, members and other stakeholders to remain on the advocacy offensive to keep this momentum going to ensure that is not more difficult to obtain safe and affordable products from credit unions.”
"Passage of the Financial CHOICE Act is an important step toward creating a regulatory environment where the nation's credit unions can thrive. NAFCU thanks committee Chairman Jeb Hensarling for introducing this important legislation," said NAFCU President and CEO Dan Berger. "NAFCU supports many provisions of this bill, but one of the most significant is the repeal of the failed Durbin interchange amendment. We urge lawmakers to see this bill through, including the repeal of this government interference that harms consumers."
While the legislation includes repeal of the Durbin debit interchange amendment that was enacted as part of the Dodd-Frank Act, both CUNA and NAFCU have raised concerns over other provisions in the legislation. The full to the House Financial Service Committee from both credit union trade groups can be found in CUToday.info’s The Gov.
Former NCUA Chairman Michael Fryzel has also sounded the alarm over a provision in the legislation that would give Congress oversight of NCUA’s budget. Fryzel’s comments can be found here.
John McKechnie, who previously represented CUNA on the Hill and who is now a senior partner with the Washington firm Total Spectrum, said, “Repealing the Durbin amendment is a tough, controversial vote for a lot of members of Congress. With all due respect, so what? Repealing it is the right thing to do. Despite the fact that the merchant lobby has tried hard to deceive Congress about any benefits Durbin has for consumers, credit unions have been hurt by the Amendment every day it’s been on the books. Our efforts to repeal it have got to continue, and we need to support Chairman Hensarling on this in any way we can.”