CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Credit Union Magazine
    • Buyers' Guide
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Jobs
  • Contact

News

Home » Ginter: Consumers can’t afford Credit Card Competition Act
Policy & Issues

Ginter: Consumers can’t afford Credit Card Competition Act

January 3, 2023
Protect cardmembers from fraud threats in the new normal

Rural residents know what it’s like to live far away from physical financiual institution branches, CommunityAmerica Credit Union CEO Lisa Ginter wrote in The Tennessean, but the Credit Card Competition Act would cause losses of credit cards and other financial services. Ginter—who also serves as vice chair on CUNA’s board and chair of CUNA’s Advocacy Committee—says the bill will jeopardize the interchange fees credit unions use to provide affordable credit to rural and underserved communities.

“Without interchange fees, these institutions might have to stop issuing credit cards altogether or increase fees to the point that financial services become unaffordable for many people,” Ginter wrote, adding that a weakened interchange system would result in higher fees and interest rates, along with less security and less access.

“Those are consequences that members of vulnerable communities can ill afford. Their need for credit won't go away if credit unions and banks scale back their credit card programs. Instead, they'll be forced to seek credit on more punitive terms from payday lenders and other less regulated institutions,” she wrote. “People with less-than-perfect credit or no credit have greater access to secure financial services thanks, in large part, to the funding provided by the current interchange system.”

Ginter added that all the systems negatively impacted by the bill would only accomplish increased savings for big retailers.

KEYWORDS interchange
Credit Union Magazine: Summer 2023

Summer 2023

Credit Union Magazine’s Summer 2023 issue highlights the lending outlook for the rest of the year, how credit unions leverage fintech companies to boost digital lending, the power of lending partnerships, common Bank Secrecy Act violations, and the shift board members must make when becoming chair.
Digital Edition •  Subscribe

Trending

  • Last day to nominate a 2023 Credit Union Rock Star

  • CUNA, League, credit union-opposed interchange bill reintroduced

  • CUNA, Leagues issue action alert in opposition to interchange bill

Tweets by CUNA_News

Polls

Do you think ChatGPT will become useful for credit unions?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us