Status
The Credit Card Competition Act of 2022 (S.4674) was introduced in the Senate and referred to the Committee on Banking, Housing, and Urban Affairs on July 28, 2022.
Our Position
DCUC opposes excessive and unnecessary regulations imposed on credit unions that would restrict lending to small businesses and individuals and eliminate credit card rewards and promotions, consequently narrowing choices for members.
Background
The Durbin amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 artificially capped fees that certain credit unions receive with debit card transactions. These 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 eliminating debit card rewards and discounts on fees. Additionally, credit unions have reduced the number of loans given to small businesses. Now, some lawmakers are discussing expanding the Durbin amendment to credit cards.
This expansion to credit cards will only further restrict lending to small businesses and individuals and eliminate credit card rewards and promotions, thus narrowing choices for members. It would be unwise to expand a policy that has not worked since its inception.
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 2022 (S.4674) was introduced in the Senate and referred to the Committee on Banking, Housing, and Urban Affairs on July 28, 2022.
Our Position
DCUC opposes excessive and unnecessary regulations imposed on credit unions that would restrict lending to small businesses and individuals and eliminate credit card rewards and promotions, consequently narrowing choices for members.
Background
The Durbin amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 artificially capped fees that certain credit unions receive with debit card transactions. These 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 eliminating debit card rewards and discounts on fees. Additionally, credit unions have reduced the number of loans given to small businesses. Now, some lawmakers are discussing expanding the Durbin amendment to credit cards.
This expansion to credit cards will only further restrict lending to small businesses and individuals and eliminate credit card rewards and promotions, thus narrowing choices for members. It would be unwise to expand a policy that has not worked since its inception.
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
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9/15/2023
7/14/2023 6/7/2023 6/7/2023 8/8/2022 |
In the News - Credit Card Competition Act