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Yesterday, lawmakers released the text of the bipartisan agreement on a Senate substitute amendment for the National Defense Authorization Act (NDAA), which could be considered by the Senate when Congress returns in November. The Credit Card Competition Act of 2022 and NCUA Third Party Vendor Authority were not among the amendments included in the substitute, marking a win for the credit union industry. An amendment offered by Sen. Dick Durbin, D-Ill., to study interchange costs to those in the military was also not included in the proposal.

NAFCU has relentlessly advocated against the Credit Card Competition Act. The issue was a focal point NAFCU’s 2022 Congressional Caucus. Following Caucus, the association teamed up with the American Bankers Association to brief over 50 staffers from Members of Congress and the Federal Reserve to underscore the threats this bill would have on the financial services industry. Additionally, NAFCU penned numerous letters to Congress to express opposition and explain the harmful impacts of the bill.

“Because of the tireless efforts of NAFCU, our member credit unions and our trade association coalition partners, we were able to keep the harmful Credit Card Competition Act and the interchange issue out of the Amendment in the Nature of a Substitute offered to the National Defense Authorization Act (NDAA) in the Senate today,” said NAFCU President and CEO Dan Berger. “This is a big win for credit unions, but we need to continue the fight to make sure lawmakers fully comprehend the damage this bill would have on the financial services industry and American consumers. NAFCU pledges to keep fighting this issue on behalf of credit unions and consumers.”

Additionally, NAFCU has opposed granting the NCUA expanded credit union vendor examination authority. In late September, NAFCU and several other trades wrote to the Senate Armed Services Committee to express concerns over the legislation. Senior Vice President of Government Affairs Greg Mesack also wrote to the Senate Banking, Housing, and Urban Affairs Committee, noting that the agency should “stay focused on where their expertise lies – regulating credit unions.” 

Although the Senate has opted to not attach these bills to the NDAA at this time, NCUA Third Party Vendor Authority remains in the House NDAA bill, and the Credit Card Competition Act or other interchange amendments could still be introduced during floor debate on the NDAA. Credit unions can contact their members of Congress and request them to oppose these bills with NAFCU’s Grassroots Action Center. NAFCU will continue to oppose these pieces of legislation and will provide any updates via NAFCU Today.