It’s all-hands-on-deck as credit union advocates are urged to oppose two detrimental pieces of legislation. A harmful bill in Washington, D.C. would severely impact members by changing the credit card interchange system, while another adverse bill in Sacramento would expand liability in elder financial abuse cases.
In both the U.S. Congress and California State Legislature, letters continue pouring into lawmakers’ offices — but MANY MORE ARE NEEDED to send a message that makes the voice of credit unions heard.
So far, more than 5,000 messages from California and Nevada credit union advocates have been sent to Capitol Hill legislators opposing S. 1838 and H.R. 3881 (Credit Card Competition Act) on interchange. Please share and promote this campaign to your staff and board members.
Meanwhile, over 750 messages have been sent to Sacramento lawmakers opposing Senate Bill 278 (elder financial abuse liability). Please also share and promote this campaign with your staff and board members if your credit union has a footprint in California.
Ask CA Lawmakers to Oppose SB 278 Unless Amended
Senate Bill 278 in the California Legislature deals with elder financial abuse liability and was authored by Sen. Bill Dodd (D-Napa). This bill would significantly expand the liability of credit unions and even their employees in instances of elder financial abuse.
The California Credit Union League is asking state lawmakers to oppose SB 278 unless it’s amended to make the bill workable for credit unions. As drafted, the bill applies to all transactions, contains personal liability for staff who are supervisors, and has a completely unworkable “safe harbor” that the League feels will lead to rapid erosion of senior members’ relationships with their credit unions.
Credit unions have produced amendments to the bill that the League feels will lead to more prevention of fraud while not destroying the banking relationship of seniors and their credit unions. These amendments would focus on transactions over $10,000. They offer a safe harbor if a credit union implements one of the following actions:
Please ACT NOW to preserve your ability to serve seniors! Take action through our Connect for the Cause campaign TODAY to enshrine credit unions’ ability to serve the senior population! If you have any questions or issues, email Leagues Senior Vice President of State Government Affairs Robert Wilson.
Ask Congress to Oppose Credit Card Interchange Bill
S. 1838 and H.R. 3881 (the Credit Card Competition Act) would severely impact credit unions and their members by changing the credit card interchange system. Here are key facts to remember as you spread the word with employees, volunteers, and credit union advocates:
Today, the Credit Card Competition Act threatens to change the interchange system — this time for credit cards. The Leagues do not want to see consumers and credit unions losing out to big retailers, so please make your voices heard by sending a pre-written letter TODAY to your two senators and member of Congress, urging them to stand up for local credit union members by opposing this legislation.
If you have any questions or issues, please email Leagues Senior Vice President of Federal Government Affairs Stephanie Cuevas.
Further Details on the ‘Credit Card Competition Act’
The Credit Card Competition Act (CCCA) of 2023 is substantively identical to the CCCA of 2022, but with two notable changes:
Under the current CCCA, the Federal Reserve would issue regulations requiring credit card issuers with more than $100 billion in assets to include at least two unaffiliated networks on which an electronic credit transaction can be processed. Additionally, the two networks cannot be the networks holding the two largest market shares of credit cards issued in the United States by licensed members of such networks (as determined by the Federal Reserve Board of Governors at the time the regulations are issued).
More information can be found on the cost of data breaches, how interchange fees protect consumers from data breaches, and the economic impact of amending interchange regulations by visiting the Interchange Works: Protect My Card site.
During the week of June 12 – 16, CUNA and organizations representing the entire financial services industry wrote House leaders in strong opposition of the interchange bill (H.R. 3881). The letter follows a similar one sent by the organizations to Senate leaders last week. The letter notes that the legislation would:
It also states that:
CUNA, along with the American Bankers Association, Association of Military Banks of America, Bank Policy Institute, Consumer Bankers Association, Defense Credit Union Council, Electronic Payments Coalition, Independent Community Bankers of America, Mid-Sized Bank Coalition of America, National Association of Federally-Insured Credit Unions, and National Bankers Association signed the letter.