Because of the interchange language, CUNA plans to oppose the financial overhaul bill moving through Congress and is asking credit unions to launch an all-out lobbying effort between now and next week's votes in the House and Senate.
"Nearly everyone recognizes that credit unions did not cause the financial meltdown and that they had no part in it; however, credit unions continue to be collateral damage, even in the proposed solutions," CUNA President/CEO Dan Mica wrote lawmakers this afternoon. "Without the interchange provisions, the bill strikes a careful balance in protecting consumers while providing meaningful financial reform."
Mica told Credit Union Times that it is too late to have another fly in to Washington but the association plans to activate its grass roots network through the leagues to do in-person efforts in states and districts and launch an e-mail and phone campaign.
He added that the association's decision to oppose a bill that is widely expected to pass will hopefully send a message to lawmakers that credit unions shouldn't be taken for granted.
"The folks on the Hill like us, want to work with us, but don't fear us. Sometimes you have to take a stand on an issue that is of importance to your members," he said.
NAFCU announced yesterday that it would oppose the bill.
Under the language agreed to by House-Senate conferees, the Federal Reserve would still have the power to regulate interchange fees though credit unions and banks with assets of $10 billion or less would be exempt and retailers would be expressly forbidden from discriminating among cards.
The bill would create a Consumer Financial Protection Bureau housed in the Fed that would regulate consumer financial products. Credit unions and other financial institutions with assets of $10 billion or less would have to comply with rules issued by the bureau but the enforcement would be carried out by the NCUA.
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