DCUC Opposes Puerto Rico H1216, Warns of Harm to Consumers, Small Businesses

WASHINGTON, DC – Today, the Defense Credit Union Council (DCUC) sent a letter to leaders of the Puerto Rico House expressing strong concerns over H1216 and its potential impact on consumers, small businesses, and financial institutions operating in Puerto Rico.

DCUC warned that the proposal, which would exclude taxes and gratuities from interchange fees on electronic transactions, could disrupt the payments system, increase costs, and reduce access to financial services. ​

“For military families, financial stability is not a side issue, it is part of mission readiness,” said Anthony Hernandez, DCUC President/CEO, Ret. USAF Colonel. “Policies that create uncertainty in the payments system or weaken the credit unions serving military members directly impact readiness, resilience, and household stability.” 

In the letter, Chief Advocacy Officer Jason Stverak outlined several of DCUC’s concerns with H1216, including market distortions that disproportionately harm credit unions, increased operational and compliance burdens, payment system fragmentation, and the likelihood that costs would simply be shifted to consumers through higher fees or reduced services. 

Stverak noted that credit unions play a vital role in supporting servicemembers, veterans, and their families in Puerto Rico and worldwide, providing trusted financial services during deployments, relocations, and times of transition. 

“Credit unions serving military communities are mission-driven institutions focused on financial readiness and inclusion,” Stverak adds. “We urge policymakers to pursue solutions that protect consumers without undermining the secure, efficient payments infrastructure families and businesses depend on every day.”