Andy Grimm Represents Credit Unions in Joint Hearing

On Thursday, May 9th the Consumer Financial Protection Bureau and the Department of Transportation held a joint hearing on Airline and Credit Card Rewards Programs. Andy Grimm, President/CEO of Apple FCU, served as a panelist representing the credit union industry. Mr. Grimm discussed how increased regulatory burdens are harming credit union members and communities they are designed to help.  He highlighted how due to regulatory limitations credit unions have less income stream opportunities than big banks making them feel the pressures of restrictions on non-interest income more acutely. He also noted that in 2023 Apple FCU received less in interchange income than in 2022 despite more transactions.

Mr. Grimm also discussed the difficulties credit unions and smaller financial institutions face when trying to take part in the credit card rewards market. These challenges include compliance demands, economies of scale, advertising budgets, and arbitrary caps placed on credit union interest rates. He noted that Apple FCU’s credit card rates on its non-rewards cards are lower than those of most big banks but due to the extremely competitive credit card rewards market, it has difficulty competing in that area.

The Virginia Credit Union League thanks Andy Grimm for representing the credit union industry in the joint hearing and sharing the unique struggles credit unions experience due to increased regulatory burdens and the barriers they face regarding credit card rewards.