ARLINGTON, Va.–With Congress not expected to make much progress on substantive legislation in the near future, the focus for credit unions on Capitol Hill is increasingly on congressional hearings (see related story).
Congress has punted much of its oversight and rulemaking to regulatory agencies, and it’s during those hearings where the focus and direction of rulemaking and rules enforcement can sometimes be gleaned.
This week is an excellent example of the hearings credit unions are watching, with a half dozen or so scheduled to take place.
Not surprisingly, the CFPB has drawn particular interest from credit unions. Under a new administration and with a relatively new director in place, it has been “getting more active in some areas,” pointed out NAFCU VP-Legislative Affairs Brad Thaler. “They are in the process of examining fees, which can be pretty broad.”
Also Deserving Attention
As CUToday.info has reported, the CFPB has been particularly interested in overdraft/NSF fees, a matter that could have particular resonance with smaller CUs that are more dependent on such fees.
There are also hearings this week on oversight of FinCEN—which enforces AML laws and regulations––and the Small Business Administration, which has sought authority to make loans directly to borrowers, rather than through third parties such as credit unions.
Thaler acknowledged congressional hearings can often be scripted with few surprises or developments. But they still deserve attention, he said.
“Occasionally, things happen. We do need to watch for any developments, particularly on (those issues) that have been out there for a while,” said Thaler. “You usually have an idea of who might say what, but you never know when new information or a new insight might come out.”
Swipe Fees
While not the subject of a hearing this week, credit card interchange rates—or swipe fees—have been getting particular attention in recent weeks from various merchants groups that have been calling on Congress to take action to suspend planned increases by Mastercard and Visa.
Thaler said he doesn’t expect Congress to act, but also urged credit unions to be wary.
“Head to head, there are more merchants than financial institutions in the United States,” said Thaler. “They have a powerful lobby. For members of Congress the issue of interchange can be toxic; don’t want to vote on it again. But we will be vigilant.”
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