Berger underscores major concerns around House version of CCCA
NAFCU President and CEO Dan Berger Tuesday sent a letter to the House, voicing major opposition to the recently introduced House version of the Credit Card Competition Act of 2022 (CCCA). Berger explained why the House companion bill, led by Representatives Peter Welch, D-Vt., and Lance Gooden, R-Texas, poses the same risks to consumers and Main Street as its Senate counterpart.
Berger reacted to the introduction of the bill earlier this week stating that it will “fail consumers at a time when financial well-being is of the utmost importance,” calling it a “bad idea, plain and simple.”
In the letter, Berger detailed the many negative impacts of CCCA underscoring its feeble attempts at expanding the failed Durbin Amendment, enacted in 2010 as part of the Dodd-Frank Act which later proved to pass minimal, if any, savings to consumers. Berger noted a Federal Reserve Bank of Richmond study which showed that after the Durbin Amendment was implemented, “98.8 percent of merchants did not pass along savings realized from debit regulation to consumers and over 20 percent increased prices.”
“The Credit Card Competition Act of 2022 is not about competition,” wrote Berger. “It is about increasing the profits of big box retailers at the expense of consumers and financial institutions by creating government intervention in a free market and establishing a back-door price control on the credit card system.”
Of note, Berger also pointed out that big box retailers would have full control over the payments network, taking away consumers’ autonomy over processing their credit card transactions. Retailers would have the ability to opt for cheap, untested networks, putting many consumers at risk. Not to mention that higher credit card costs would be passed along to consumers and the financial institutions who serve them.
NAFCU has fervently opposed this anti-consumer bill, most recently sharing the harmful effects with more than 50 Congressional and Federal Reserve staff members, during the association’s 2022 Congressional Caucus last week. During the hour-long briefing, co-host NAFCU Senior Vice President of Government Affairs Greg Mesack reiterated how this legislation would turn the payments system on its head and take away credit unions’ ability to provide low-cost, and sometimes free, financial products and services.
In addition, Berger recently wrote an op-ed on why enacting the CCCA would also worsen inflation pressures for Americans by limiting consumers' access to safe and secure payment networks during credit card transactions.
“The impact is real. And if that isn’t enough, mom-and-pop shops, who are already struggling to keep their business running, would now be expected to adopt new point-of-sale hardware system to accommodate for the mandates,” wrote Berger. “Americans are already feeling the heat of inflation. They don’t need added concerns about where their transactions are being routed and whether they’re safe.”
Read the full letter. NAFCU will continue to advocate against this legislation on behalf of the credit union industry and its 133 million members and will update members via NAFCU Today.
Add to Calendar 2022-09-29 14:00:00 2022-09-29 14:00:00 Coming Soon: CECL This is a deep-dive refresher into the requirements of the Current Expected Credit Losses (CECL) standard. ASC 326 (CECL) is the most significant accounting standard to impact credit unions in many years. Your credit union should be prepared to adopt CECL in 2023 – this will be an effort to make sure you have a sound calculation, appropriate accounting policies and sufficient disclosures. In this Coming Soon: CECL webinar, you’ll get a baseline understanding of the accounting decisions required by the standard, with a focus on those that have tripped up earlier adopters; lessons learned from previous adopters; best practices and key items to consider for your model on a go-forward basis. Key Takeaways Understand requirements of the CECL standard Analyze lessons learned and best practices from previous adopters Evaluate key items to consider for future maintenance of the CECL model(s) Register Now$295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until September 29, 2023.Go to the Online Training Center to access the webinar after purchase » Who Should Attend Presidents and CEOs CFOs Accounting titles NCRMs Risk titles Education Credits NCRMs will receive 1.0 CEUs for participating in this webinar CPA credit information is below; recommended 1.0 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Senior Associate Director of Education, NAFCU Learning Objectives: See key takeaways Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.0 credits Recommended Field of Study: Accounting – Technical About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, DC. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU email@example.com America/New_York public
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