State Senate Banking Committee, State House Approve Interchange Resolution (Misc News: February 9, 2011)
Michigan state legislators are supporting credit unions by joining the MCUL's call to delay implementation of the Fed's debit interchange fee regulatory proposal.
House Resolution 21 was adopted in the full House on February 10th with bi-partisan support. Thirty-six Republicans and 12 Democrats, for a total of 48 Michigan Representatives co-sponsored the bill introduced by Rep. Marty Knollenberg, R-Troy. The Senate Banking and Financial Institutions Committee took up an identical resolution on the same day. Senate Resolution 14 sponsored by Sen. Darwin Booher, R-Evart was unanimously reported out of committee and awaits adoption by the full Senate on Tuesday, February 15th.
"We continue to pull out all the stops on the debit card interchange issue," MCUL & Affiliates CEO David Adams said. "In addition to 'Operation Comment,' letters to our three congressmen on the House Financial Services and in-district meetings, we are also taking this unprecedented action of asking our state Legislature to encourage Congress to address this serious issue. The action by the committee today is gratifying and we will seek similar action in the state Senate."
According to a letter from Jordan Kingdon, the MCUL's director of government affairs, there are several issues that must be addressed to ensure the exemption for small issuers.
- The Fed proposal does not include any provision designed to enforce the carve-out for small issuers.
- The Fed has not taken into consideration the cost to smaller institutions to provide debit card services. This cost is greater for smaller institutions than larger ones.
The league, in conjunction with CUNA, is seeking to have the proposed rules delayed by the Federal Reserve or by Congress. During the delay, the impact on small issuers could be studied.
Click here to read the full House resolution.
Click here to read the full Senate proposed resolution.