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NAFCU and other financial services trade organizations are continuing to fight back against legislation to expand interchange price controls, highlighting the negative effects it would have on consumers, credit unions, and other financial institutions.

The legislation, sought by big-box retailers, was reintroduced last week and would extend the debit routing provisions of the 2010 Durbin Amendment to credit cards. It closely mirrors the bill from last Congress, which NAFCU successfully kept from moving forward. NAFCU is fully engaged with members of Congress to highlight this deeply flawed policy.

Wednesday, the groups sent a letter to House leadership urging opposition to H.R. 3881 – introduced in the chamber by Reps. Lance Gooden, R-Texas, and Zoe Lofgren, D-Calif. The trades previously sent a similar letter to Senate leadership for S. 1838, led by Sens. Dick Durbin, D-Ill., and Roger Marshall, R-Kan.

“Contrary to its sponsors’ misguided claims, the adverse effects of this bill are clear: fewer options for consumers, greater threats to consumer data and privacy, weakened community banks and credit unions, and the disappearance of card rewards programs that families of all income levels5 use to stretch their budgets,” the trades wrote.

Read the letter for full details on the consequences of the Durbin Amendment and how those would be exacerbated should this legislation become law.

Credit unions are encouraged to take action and contact lawmakers via NAFCU’s Grassroots Action Center. NAFCU is also seeking statements from credit unions to share with the media about how this bill will hurt business operations and members; submit a statement now.