WASHINGTON–America’s Credit Unions has been “engaged intensely” over the last week with both Capitol Hill and its own grassroots membership over the Credit Card Competition Act, a piece of legislation credit unions and others thought had been checked off the congressional to-do list.
It’s now back on the list.
“We’ve got members of Congress that have made their positions known on that issue for a number of years, but that calculation may have changed,” said Scott Simpson, president and CEO of America’s Credit Unions, referring to how a social media post by President Trump has become a defibrillator for what had been a flat-lined Credit Card Competition Act.
The CCCA, which would cap credit card interchange for financial institutions with more than $100 billion in assets, is strongly opposed by credit unions and other financial institutions, while it has equally strong support from the nation’s retailers.
It is sponsored by Sen. Roger Marshall (R-Kan.). After announcing his call for a yearlong cap of 10% on credit card APRs (see related story), Trump later declared his support for the CCCA on social media.
Shifting Gears
“I think the president’s position on interchange has caused us to shift gears just a little bit,” Simpson said. “A week ago, we were up to our necks with the president’s cap announcement. Obviously, there has been a slight change of direction on relatively different issues with different tracks.”
Simpson referenced how some members of Congress may have changed their positions based on the president’s statement, adding he has been “very pleased” with renewed credit union engagement with lawmakers on the issue.
‘Huge Jolt’
Greg Mesack, senior vice president of advocacy with America’s Credit Unions, said the renewed momentum behind the CCCA came as something of a surprise.
“We saw a huge jolt from that (social media post). We went from not having the bill introduced and assuming this issue was somewhat moribund … to an issue that was front and center with the president endorsing it and with bills introduced in both chambers of Congress,” Mesack said.
Mesack noted the Credit Card Competition Act, as it currently stands in the Senate, has fewer cosponsors than it did in the prior session of Congress. However, he said the president’s endorsement puts it “on the edge,” as it could draw in Republicans who previously had not engaged on the issue.
“We’re aggressively working with our league partners and our member credit unions to reach out and educate lawmakers about this issue and about the harm it causes community financial institutions and consumers,” he said.
