May 18, 2017

Economic Monitor finds support for CHOICE Act, Durbin repeal

NAFCU's latest Economic & CU Monitor survey results, now available to member credit unions, show support among respondents for Congress' move to implement the regulatory relief reforms found in the Financial CHOICE Act (H.R. 10), particularly the proposed repeal of the Durbin interchange amendment.

H.R. 10 recently passed the House Financial Services Committee and awaits action by the House. Reports indicate that a vote on the bill could come as early as next month.

Regarding questions about the Durbin amendment, a majority of credit union survey respondents reported that their current per-transaction debit interchange rates for debit or PIN transactions are somewhat or significantly lower than their pre-Durbin rates. "Additionally, about half of the respondents reported somewhat or significantly lower current per-transaction rates for signature transactions, as compared to their rates before the Durbin amendment was implemented," the Monitor found.

Credit union respondents to the survey also were favorable toward provisions in the CHOICE Act that would roll back the CFPB's unfair, deceptive, and abusive acts and practices (UDAAP) authority. Credit union respondents noted that the CFPB's "aggressive, frequent and wide-ranging" UDAAP enforcement actions have forced the industry to become overly cautious in the services and products they offer to their members due to uncertain UDAAP compliance risks.

While this bill makes its way through the legislative process, NAFCU encourages credit unions to remain vigilant in keeping up their grassroots efforts and ask their lawmakers to support these provisions. Credit unions can visit NAFCU's Grassroots Action Center for more information on how to reach out to lawmakers. Additional information on the Financial CHOICE Act can also be found by viewing a recent NAFCU Today video.

This month's Monitor also points to continued strong member, loan and share growth for the credit union industry. Delinquencies and net charge-offs remain low and survey respondents anticipate little change to loan performance over the next 12 months.

Credit unions can now participate in next month's survey on the topic of the Bank Secrecy Act and data security. Responses are due June 2.