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NAFCU activates CU grassroots to fight interchange amendment to NDAA
NAFCU is calling on credit unions to fight back against efforts to attach legislation sought by big-box retailers – that would expand interchange price controls – to the fiscal year 2024 National Defense Authorization Act (NDAA). The association’s advocacy efforts kept the bill from being attached to the House version of the NDAA.
The Senate voted Tuesday to begin floor debate on the NDAA; Sens. Dick Durbin, D-Ill., and Roger Marshall, R-Kan., filed an amendment Tuesday to try to attach their interchange bill (S. 1838, the Credit Card Competition Act) to the NDAA. NAFCU Vice President of Legislative Affairs Brad Thaler sent a message to member credit unions urging them to use NAFCU’s Grassroots Action Center to send messages directly to their senators to oppose attaching S. 1838 to the must-pass NDAA.
“This harmful legislation would regulate credit card interchange rates by requiring multiple routing networks for credit transactions, essentially extending the debit routing provisions of the Durbin Amendment to credit cards,” Thaler wrote to credit unions. “While the bill text seeks to limit these new requirements only to institutions over $100 billion in assets, the history of the failed exemption in the Durbin Amendment has shown that market changes will negatively impact all institutions and essentially function as a backdoor price control on credit interchange for financial institutions.
“Sens. Durbin and Marshall could force a vote on this legislation in the next two weeks as the Senate works to wrap up its version of the NDAA, so the time to contact your Senators is now.”
The alert on NAFCU’s Grassroots Action Center explains how this legislation would hurt credit unions and consumers.
NAFCU and other financial trade associations are continuing to fight against the big-box bailout legislation. NAFCU also continues to urge lawmakers to oppose any changes to the NDAA that would allow banks to operate rent-free on military bases.
The House passed its FY2024 NDAA last week, which did not include either NAFCU-opposed provision. After the Senate passes its version, the House and Senate will form a conference committee to hash out differences between the two chambers’ bills.