Status
The Credit Card Competition Act of 2023 (S.1838) was introduced in the Senate, read twice, and referred to the Committee on Banking, Housing, and Urban Affairs on June 7, 2023. Similar legislation (H.R.3881) was introduced in the House and referred to the House Committee on Financial Services.
Our Position
DCUC opposes excessive and unnecessary regulations imposed on credit unions that not only eliminate credit card rewards and promotions, but also sends personal financial information over unsecured networks as merchants narrow choices for consumers.
BackgroundThese consequences were first evident in the aftermath of the 2010 Durbin amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. This amendment also artificially capped fees that credit unions receive with debit card transactions.
Both debit and credit card fees cover expenses for handling transactions and losses in the case of fraudulent activity. Because of this federal regulation, credit unions issuing debit cards have lost billions of dollars in revenue, resulting in the elimination of debit card rewards and discounts on fees. Yet, savings were never passed on to the consumer as merchants kept a larger share of the profits because of the legislation. Now, the same lawmakers and big box merchants are discussing expanding the Durbin amendment to credit cards.
Resources
Handouts of DCUC's current advocacy priorities are available for download. These handouts include information on each advocacy priority and talking points you can use when contacting your state representatives and senators.
The Credit Card Competition Act of 2023 (S.1838) was introduced in the Senate, read twice, and referred to the Committee on Banking, Housing, and Urban Affairs on June 7, 2023. Similar legislation (H.R.3881) was introduced in the House and referred to the House Committee on Financial Services.
Our Position
DCUC opposes excessive and unnecessary regulations imposed on credit unions that not only eliminate credit card rewards and promotions, but also sends personal financial information over unsecured networks as merchants narrow choices for consumers.
BackgroundThese consequences were first evident in the aftermath of the 2010 Durbin amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. This amendment also artificially capped fees that credit unions receive with debit card transactions.
Both debit and credit card fees cover expenses for handling transactions and losses in the case of fraudulent activity. Because of this federal regulation, credit unions issuing debit cards have lost billions of dollars in revenue, resulting in the elimination of debit card rewards and discounts on fees. Yet, savings were never passed on to the consumer as merchants kept a larger share of the profits because of the legislation. Now, the same lawmakers and big box merchants are discussing expanding the Durbin amendment to credit cards.
Resources
Handouts of DCUC's current advocacy priorities are available for download. These handouts include information on each advocacy priority and talking points you can use when contacting your state representatives and senators.
letters & Comments - Credit Card Competition Act
In the News - Credit Card Competition Act