Financial services trades to Congress: NDAA shouldn’t be a payday for retailers
WASHINGTON, DC (October 6, 2022) — Ten leading financial services trade associations sent a letter to U.S. House and Senate leadership and the top members of the Senate and House Armed Services Committees warning them that attaching the so-called Credit Card Competition Act of 2022 to the National Defense Authorization Act (NDAA) “will rob military families of their credit card rewards, reduce the availability of safe credit, and undermine the nation’s data security.”
The American Bankers Association, Association of Military Banks of America, Bank Policy Institute, Consumer Bankers Association, Credit Union National Association, Defense Credit Union Council, Electronic Payments Coalition, Independent Community Bankers of America, National Association of Federally-Insured Credit Unions, and National Bankers Association issued the following joint release today:
“Our actions must match our words when we say that we support our military personnel. Slipping the controversial Credit Card Competition Act into the NDAA would compromise our service members’ financial safety and security just to allow big box retailers to further pad their record-breaking profits.
“As the leading trade associations representing nearly every credit union or bank, including those primarily serving military-affiliated members and customers, we recognize the vital role financial institutions play in providing financial counseling, creating access to credit, and protecting against fraud.
“The Credit Card Competition Act of 2022 undercuts the financial services system by placing artificial price caps on the interchange fee that merchants pay to defray costs associated with data breaches. Limiting financial institutions’ collective ability to offer robust fraud protection will undoubtably hurt consumers, including service members.
“The first Durbin amendment capped interchange fees on debit cards, leading many financial service providers to cut back on low-cost banking services and free checking accounts. A study from the Federal Reserve of Richmond also found that retailers largely kept any savings from the cap for themselves.
“Congress shouldn’t be in a rush to repeat past mistakes. NDAA should be a military-focused bill that funds our essential military services and continues to protect our nation. Retailers don’t need any additional help protecting their profits.”
About Credit Union National Association (CUNA)
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by more than 130 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.