League Notes Eventful Week in Advocacy; Urges CUs to Keep Up Efforts on Interchange

Here’s what you need to know …

Credit Card Competition Act / Interchange

The credit union-opposed Credit Card Competition Act and the changes it would mean for our credit card payment system and interchange fees are a top legislative concern. Your League is closely monitoring Congress as it works on the key appropriations bills for the coming fiscal year. The chief worry: Proponents of the CCCA will again succeed in attaching the language of the CCCA to must-pass appropriations measures.

In fact, the “minibus” appropriations measure in the Senate contained the CCCA. It failed to pass the chamber, but there will be other opportunities to advance the CCCA. The Senate sponsors of the CCCA (S.1838) made another pitch for the measure – taking to the Senate floor yesterday after a press conference last week.

Thank you to all the credit union champions who responded to our call on Wednesday to contact our Congressional Delegation. We made that push following news that Rep. Bob Good (R-5^th) had signed on as a co-sponsor of the House version of CCCA (H.R. 3881). League President/CEO Carrie Hunt spoke directly to the congressman this week and urged him to reconsider. We joined the Virginia-based banking trade groups in a joint letter asking the same. You can help by urging your fellow credit union champions to email lawmakers today through our Action Center.

The Shutdown

By all accounts, there is no clear path to avoid a shutdown of the federal government in two days’ time. In meetings and communications with our Congressional delegation this summer, we urged them to avoid a shutdown. We know credit union members will be harmed, as will our regional economy. And while credit unions will step up and aid their members, the shutdown does pose challenges for credit unions, as well.

As in previous shutdowns, we’re collecting information about what you’re doing to aid members. Our short survey is here. Special thanks to Congressional Federal Credit Union, Eastman Credit Union, Justice Federal Credit Union, Navy Federal, Northwest Federal Credit Union, PenFed and US Senate Federal Credit Union for providing information.

Interest Rate Cap Amendments

Interchange wasn’t enough. Two Senators are seeking to attach interest rate cap legislation to a spending package previously passed by the House. One amendment would cap credit card interest rates at 18%, inclusive of all finance charges. Another bill would take the “all-in” 36% APR limitation of the Military Lending Act and apply it to all consumer credit, with exceptions for car loans, mortgage loans, and federal credit union loans subject to the 18% interest rate cap. We’ve voiced our opposition to these amendments with Senators Waner and Kaine, as have CUNA and NAFCU in joint trade letters.