A California credit union's concerns that Los Angeles retailers may be steering their members away from using their credit union-issued debit cards appeared unfounded last week.
Robert York, CEO of the 13,000 member, $108 million California Bear Credit Union, Los Angeles, wrote an email on Nov. 18 to other California credit union CEOs reporting that some of the CU's members and employees had reported difficulty using their CU- issued debit cards. He said some retailers appeared to want them to use cards issued by larger banks for their purchases.
Credit unions have long worried about such possible steering after an amendment to last year's financial reform law went into effect. The Durbin amendment cut the amount of money retailers pay to large banks for transactions using their debit cards and exempted small banks and almost all credit unions from the cut.
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