CUNA Deputy Chief Advocacy Officer Jason Stverak appeared on the Live Richer podcast recently to discuss the many negative effects that come with the Credit Card Competition Act. CUNA, Leagues, and credit unions prevented the from moving forward in the previous Congress, despite efforts to include it in must-pass end-of-year legislation.
Stverak noted that there is more than 10 years of evidence on the negative impacts of the Durbin Amendment to the Dodd-Frank Act, which impacted debit cards, and the Credit Card Competition Act would be similarly harmful.
“There have been pretty disastrous effects for many consumers loss rewards on debit cards, loss of free checking for many accounts, that’s what’s going to happen if the legislation proposed by Sens. Durbin and Marshall goes into effect,” Stverak said. “The changes they will make on the interchange program will raise the costs of credit cards to the point where many programs will go away.”
He said it’s important for consumers to share their concern with the bill, as the big box retailers—who will benefit the most from the bill—are lobbying in favor of it.
“We have one of the best, most secure, safest, accepted credit card payment program around the globe, and this piece of legislation would be a direct threat to that,” Stverak said.