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NAFCU's Hunt (left) and Thaler discussed debit
interchange developments in Thursday's member
call-in. – NAFCU photos |
June 17, 2011 – More than 300 NAFCU members dialed into the association’s “Mid-Year Review” call-in yesterday to hear the latest from NAFCU’s senior government affairs staff on expected debit interchange rules, Consumer Financial Protection Bureau rulemaking and more.
NAFCU General Counsel and Vice President of Regulatory Affairs Carrie Hunt briefed members about oral arguments heard yesterday in the TCF National Bank interchange lawsuit and described some of the changes credit unions may see in the Federal Reserve’s final debit interchange rule, expected out very soon.
Hunt said the Fed may “move off” from its 7- to 12-cent cap on debit interchange fees, noting that “some believe it will creep up, but not enough to cover all of a credit union’s costs.” She said the Fed may also acknowledge fraud should be a factor when it calculates its new rate – a point that NAFCU has argued in comment letters and congressional testimony.
As for “what happens next” in Congress on interchange, NAFCU Vice President of Legislative Affairs Brad Thaler said last week’s Senate vote on the Tester-Corker amendment, which fell short of the 60 affirmative votes needed to pass, likely “closes the door” in the Senate for further action. He said there is interest in the House in delaying the implementation of the interchange cap but that “all eyes” are now trained on the Fed and its final rule. “It’s a waiting game to see what the Fed will do,” he said.
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NAFCU's Dan Berger and Fred Becker also
participated in Thursday's call. |
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NAFCU President Fred Becker thanked NAFCU members for their “tremendous” grassroots effort in support of Tester-Corker and said that NAFCU would continue to look for ways to lessen the impact of the interchange cap on credit unions.
With respect to the CFPB, Hunt noted that with or without a director, CFPB regulatory authority begins on July 21. While there is legislation pending in Congress that would delay the start date of the CFPB until a director is appointed, that legislation, Thaler said, does not have a strong prospect of passing – at least not before July 21.
Hunt said it remains to be seen how the CFPB regulates consumer financial products, but she said it has been “deliberative” so far and that its work to simplify TILA/RESPA forms seems to be a positive step. She said NAFCU has met several times with Elizabeth Vale, the CFPB’s credit union liaison, and that NAFCU will keep working with the agency to resolve credit union concerns.
NAFCU Director of Regulatory Compliance Steve Van Beek covered a number of compliance deadlines coming up quickly for credit unions, including a June 24 deadline for new disclosures on non-interest-bearing transaction accounts.
NAFCU members will be able to listen to an audio file of the call-in when it is posted on the NAFCU website.