WASHINGTON, DC (May 19, 2026) |
The Defense Credit Union Council (DCUC) issued the following statements in response the National Credit Union Administration’s reported pending rulemaking on preemption and non-interest charges and fees for federal credit unions:
“DCUC strongly supports the NCUA’s effort to provide regulatory clarity and reaffirm the federal authority of credit unions to offer secure, efficient, and reliable payment services to their members. At a time when states are increasingly pursuing inconsistent and potentially unworkable interchange and payment-related mandates, it is critical that federal credit unions operate under a clear and uniform national framework,” says Jason Stverak, DCUC Chief Advocacy Officer. “Defense credit unions serve millions of servicemembers, veterans, Department of War personnel, and military families who depend on seamless electronic payment systems, fraud protections, and uninterrupted access to financial services regardless of where they are stationed around the world. A fragmented, state-by-state approach to interchange regulation and payment processing requirements threatens to increase operational complexity, elevate compliance costs, and ultimately harm consumers.”
DCUC has consistently urged the NCUA to act on this issue and to ensure that federal credit unions are not placed at a competitive disadvantage compared to federally regulated banks.
“We appreciate Chairman Hauptman and the NCUA for recognizing the importance of preserving regulatory consistency, operational certainty, and the safety and soundness of the national payments system. We look forward to reviewing the full text of the proposed rule and working closely with the agency to ensure the final framework protects credit unions’ ability to continue serving their members, including those in the military and veteran communities, without unnecessary disruption or conflicting state mandates.”
DCUC previously urged the NCUA to oppose the Illinois interchange fee law and highlighted concerns that inconsistent state mandates could fragment the payments system and impose significant burdens on credit unions.
The pending NCUA action appears similar to recent OCC actions affirming federal preemption authority regarding non-interest charges and fees and the Illinois Interchange Fee Prohibition Act.
“This issue goes beyond regulatory consistency. It directly affects financial readiness and the day-to-day stability of the military and veteran communities credit unions serve every day,” says Anthony Hernandez, DCUC President/CEO, Ret. U.S. Air Force Colonel. “Payment systems are essential infrastructure for modern life, supporting everything from payroll and benefits access to household budgeting and secure transactions during deployments and permanent change of station moves. A unified federal framework helps ensure these systems remain reliable and interoperable for servicemembers and their families, who often face unique mobility and financial demands.
Hernandez adds, “We appreciate the NCUA’s attention to the practical implications of fragmented state regulation and its impact on both consumers and financial institutions. DCUC will continue to engage constructively to ensure the final rule preserves stability, encourages innovation, and protects credit unions’ ability to serve their members without unnecessary disruption.”