WASHINGTON–A version of the Credit Card Competition Act, to which credit unions are strongly opposed, has been introduced in the House. In the Senate, meanwhile, legislation that credit unions support has also made its debut.
In the House, Reps. Peter Welch, (D-VT) and Lance Gooden (R-TX) co-sponsored the Credit Card Competition Act. It was introduced earlier in the Senate by Sens. Roger Marshall (R-KS) and Dick Durbin (D-IL). The legislation, which provides other options for routing credit card transactions to retailers, is strongly supported by trade groups for the nation’s retailers.
Both credit unions and retailers have been out in force in Washington lobbying for and against the bill.
“This bill would break a system that we know works, and risk put consumers’ sensitive financial data at risk, just to give big box retailers yet another windfall,” said CUNA President/CEO Jim Nussle. “We will continue to stand behind credit unions and other community financial institutions in strong opposition to this bill.”
CUNA reported it issued an action alert calling on credit unions to send messages of opposition to Capitol Hill, resulting in more than 27,000 messages as of this week.
Bill Debuts in Senate
Meanwhile, in the Senate, the Expanding Financial Access for Underserved Communities Act has been introduced.
The Expanding Financial Access bill, which CUNA said represents the most significant modernization of the Federal Credit Union Act since 1998, passed the House in June as part of a larger legislative package.
The bill was introduced in the Senate by Sen. Alex Padilla (D-CA).
“We thank Sen. Padilla for his leadership in helping credit unions bring safe and affordable financial services to under- and unbanked communities,” said CUNA President/CEO Jim Nussle in a statement. “The House has already passed this bill, and we look to continue to gather support in the Senate for this much-needed update to credit unions fields of membership.”
What Bill Does
The legislation would:
- Allow all federal credit unions to add underserved areas to their field of membership.
- Exempt business loans made in underserved areas from the member business lending cap.
- Expand the definition of an underserved area to include any area that is more than ten miles from the nearest financial institution branch.
According to CUNA, more than 750 census tracts are financial deserts, and a net 7,800+ bank branches closed between January 2005 and March 2021. Credit unions opened more than 1,400 net credit union branches over the same time period, the trade group said.
Busy Week in DC
Meanwhile, it will be another “busy week” on Capitol Hill, with representatives from five leagues representing 11 states hiking the Hill, while a number of hearings will also be getting CU attention, according to CUNA.
As CUToday.info reported, credit unions were matched in their turnout last week as representatives of the country’s merchants were also in town lobbying in favor of the proposed interchange bill, which credit unions oppose.
Jason Stverak, deputy chief advocacy officer of federal government affairs with CUNA, noted the trade group and others will also be watching for movement on a continuing resolution to fund the federal government. If that does not pass, the Senate will continue to work on nominations while the House works on various pieces of legislation, he said.
Among the hearings getting credit union attention this week are:
Today
House Agriculture Committee: Assessing Crypto as a Tool for Financial Inclusion
House Committee on Financial Services: Under the Radar: Alternative Payment Systems and the National Security Impacts of Their Growth
Wednesday
Holding Megabanks Accountable: Oversight of America’s Largest Consumer Facing Banks
Thursday
Senate Banking Full Committee Hearing: Annual Oversight of the Nation’s Largest Banks