Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Huizenga meets with Mich. CUs on interchange
LANSING, Mich. (2/10/11)--Freshman U.S. Rep. Bill Huizenga (R-Mich.) thanked Michigan credit union leaders Monday for their input 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 Michigan Credit Union League (MCUL) and local credit union leaders met with Huizenga, who was appointed to serve on the U.S. House Financial Services Committee and the Financial Institutions and Consumer Credit subcommittee that will hold a hearing on Feb. 17 to discuss the Federal Reserve’s interchange proposal (Michigan Monitor Feb. 7). “He expressed concern about the effects of this provision increasing fees on consumers,” said Jordan Kingdon, MCUL’s director of governmental affairs. Huizenga told the group that he was looking forward to learning more about the interchange process. The Durbin Amendment to the Dodd-Frank Act would cap interchange fees for card issuers with more than $10 billion in assets. But there is no provision in the law that allows the Federal Reserve to enforce a two-tier system that would protect small issuers such as credit unions. “Credit union 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. The Credit Union National Association (CUNA) has urged the Federal Reserve to stop and study the new interchange law, rather than forging ahead with a two-tier system. CUNA has asked the Fed to take the time needed to consider all interchange related costs, and set a reasonable interchange rate to avoid unintended consequences. These unintended consequences could include the elimination of debit card programs by credit unions or the addition of new fees that would be imposed on credit union members in order to keep the programs, CUNA has said.


RSS print
News Now LiveWire
NCUA re-schedules start of tomorrow's closed meeting to 9 a.m. ET. Open meeting still at 10 a.m. ET.
15 hours ago
.@lisamurkowski @SenatorEnzi @SenJohnBarrasso are latest to weigh in on NCUA risk-based capital proposal. See #NewsNow tomorrow for more
16 hours ago
Now up on News Now: Fed stays course on taper, interest rates http://t.co/6DntsW58vA
18 hours ago
Positive performance indicators and the potential for rising interest rates in @TheNCUA 's latest economic update. http://t.co/yptPbIGvnU
21 hours ago
The @CFPB has launched a nationwide effort to provide financial education. http://t.co/sF3FXHpv3k
21 hours ago