Huizenga Listens to Credit Union Interchange Concerns (Misc News: February 1, 2011)
Freshman Congressman Bill Huizenga, R-Zeeland, told credit union leaders Monday he appreciated additional information on how the new debit interchange law and proposed regulations would affect small issuers and how the changes "could lead" to increased costs on consumers.
More than a dozen MCUL and local credit union leaders met with Huizenga, who was appointed to serve on the U.S. House Financial Services Committee as well as the Financial Institutions and Consumer Credit subcommittee that will hold a hearing on Feb. 17 to discuss the Federal Reserve’s interchange proposal.
“He expressed concern about the effects of this provision increasing fees on consumers,” said Jordan Kingdon, MCUL’s director of governmental affairs.
Kingdon said Huizenga told the group that he was looking forward to learning more about the interchange process. Huizenga has agreed to learn more about the issue and the potential consequences.
The Durbin Amendment to the Dodd-Frank Law would cap interchange fees for larger card issuers, those with more than $10 billion in assets. But there is no provision in the law that allows the Fed to enforce a two-tier system that would protect small issuers such as credit unions.
“CU leaders encouraged Congressman Huizenga to urge his colleagues on the panel to slow down the Fed's action on this issue to ensure proper time is taken in committee to study the effects of current language on credit unions,” Kingdon said.
Click here to to access the MCUL's issue brief on debit interchange fees and here to access CUNA's comment call on the FED's debit interchange fee proposal. All comments on the Fed's proposal are due by Feb. 22.