Interchange Fee Bill Stands to Hurt Consumers, Disrupt Market,
CUNA President and CEO Dan Mica Says
Credit union leader comments on bill subject of hearing today in House Judiciary

May 15, 2008

FOR IMMEDIATE RELEASE
Contact: Patrick Keefe -- (202) 508-6765
pkeefe@cuna.com

"The Credit Union National Association opposes HR 5546 because it would inject government controls into the market in the midst of economic uncertainty, and adversely affect consumers. That, in particular, causes us pause with this legislation, as consumers stand to lose the most if it becomes law of the land. No one expects merchants are going to lower their prices because the government-controlled interchange rate is less than what they are paying today. And, financial institutions will have to find ways to cover the cost of the payment system. At the end of the day, this legislation stands to make convenient credit more expensive for consumers, and in some cases less available.

"Beyond that, HR 5546 imposes unnecessary regulation over the card transaction interchange fee process by establishing an expensive governmental tribunal that would impose its decisions on a system that is more appropriately governed by the market. Government interference in this working market stands to harm all participants."

Copyright © 2008 - Credit Union National Association, Inc.