WASHINGTON – Credit union leaders continue to highlight the movement’s pro-consumer attributes in the pages of local publications across the nation. The pieces reinforce the work of CUNA’s Campaign for Common-Sense Regulation, a bipartisan, pro-consumer campaign to achieve regulatory relief through legislative and regulatory advocacy.
In Grand Rapids Business Journal, Michigan Credit Union League President/CEO Dave Adams calls for the repeal of harmful legislation such as the Durbin Amendment, which required the Federal Reserve to limit fees charged to retailers for debit card processing.
“Credit unions have lost more than $1 billion dollars since the Durbin Amendment went into effect–and this is just from interchange revenue alone. We’ve also seen our compliance costs increase by at least 39% due to regulations in Dodd-Frank, including the Durbin Amendment’s routing provision,” Adams wrote. “This loss of income has real-world impact for smaller community-based financial providers. While some institutions were forced to reduce the number of free checking accounts, there also have been cuts to debit card rewards and higher fees for services.”
Adams also cites multiple studies conducted since the Durbin Amendment was implemented that indicate retailers have failed to pass along their $6 billion-$8 billion “annual windfall” from the Durbin Amendment to consumers.
Patrick LaPine, president/CEO of the League of Southeastern Credit Unions and Affiliates, laments the one-size-fits-all style of regulating and highlights how credit unions not only serve their members but serve as a balance to the Florida economy in Florida Politics.
“Protecting consumers from the irresponsible behavior we saw from big banks makes sense. It was not reasonable, however, for [the Consumer Financial Protection Bureau] to blanket all financial institutions with the exact same regulations, regardless of size,” he wrote. “It is not common sense for Florida credit union members to pay for the mistakes of the big banks. Something must be done.”
In an op-ed published in the Daily Record last month NJCUL President/CEO David Frankil, took issue with bank challenges to the NCUA’s regulatory relief rules, and the negative effects the challenges have on consumers.
“Here is what [bankers] are really afraid of losing: A world in which they control most of the marketplace, charging exorbitant fees, and inflating interest rates without fear of an alternative putting pressure on them to treat their customers properly,” Frankil wrote. “That is why their lawsuit against these new rules is meritless, and can only be construed as an affront to consumers.”
Credit union leagues in Massachusetts, New Jersey and Ohio, as well as in Nebraska and Indiana, have gone to local publications to push for regulatory relief in recent weeks.
in Industry News