WASHINGTON—In its ongoing efforts to oppose the Credit Card Competition Act, NAFCU has written to Congress to “dismantle arguments” from retailers that “will tell you that small financial institutions like credit unions won’t be hurt by the bill because it has an exemption for institutions below $100 billion in assets.”
NAFCU Vice President of Legislative Affairs Brad Thaler told Congress it should not be “fooled” by that argument, which is the same one made by supporters of the original Durbin Amendment that applies to debit interchange.
According to Thaler, the industry’s experience with the Durbin Amendment, which contained an “exemption” for institutions below $10 billion assets, has “revealed that even a high exemption threshold will not protect smaller institutions. Federal Reserve data showed that debit interchange revenue on a per transaction basis dropped for exempt institutions after enactment of the Durbin amendment.”
Added Thaler, “The exemption didn’t work, and the one in the Credit Card Competition Act won’t either. All credit unions will be hurt by this bill.”
Action Urged on NFIP Funding
Meanwhile, as lawmakers continue to work on ways to fund the government ahead of a potential shutdown this weekend, NAFCU called on lawmakers to prevent a lapse of the National Flood Insurance Program (NFIP).
Funding for the NFIP is currently set to expire at midnight Sept. 30, along with other federal government funding. Sen. John Kennedy (R-LA) has introduced legislation to extend the NFIP through the end of 2023, and the House is expected to consider the bill on its suspension calendar this week.
‘Long-Term’ Authorization Urged
“NAFCU encourages Congress to enact a long-term reauthorization to reform and modernize the NFIP, and we stand ready to work with Congress in this regard,” Thaler wrote. “However, with the NFIP in danger of lapsing at the end of September, it is critical that Congress enact an extension of the program in time to ensure that the NFIP is not disrupted.
“NAFCU appreciates the urgency with which Congress is acting to prevent this vital program from lapsing, as a lapse of the NFIP will leave millions of homeowners at risk and create disruptions and uncertainty in the housing market.”
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