CURRENT Newsletter | September 29, 2023

Share Your News!

• Email Us
• 800.768.3344, ext. 629

We appreciate our loyal readers! Please send your comments and feedback to pr@vacul.org.

League Notes Eventful Week in Advocacy; Urges CUs to Keep Up Efforts on Interchange

Here’s what you need to know …

Credit Card Competition Act / Interchange

The credit union-opposed Credit Card Competition Act and the changes it would mean for our credit card payment system and interchange fees are a top legislative concern. Your League is closely monitoring Congress as it works on the key appropriations bills for the coming fiscal year. The chief worry: Proponents of the CCCA will again succeed in attaching the language of the CCCA to must-pass appropriations measures.

In fact, the “minibus” appropriations measure in the Senate contained the CCCA. It failed to pass the chamber, but there will be other opportunities to advance the CCCA. The Senate sponsors of the CCCA (S.1838) made another pitch for the measure – taking to the Senate floor yesterday after a press conference last week.

Thank you to all the credit union champions who responded to our call on Wednesday to contact our Congressional Delegation. We made that push following news that Rep. Bob Good (R-5^th) had signed on as a co-sponsor of the House version of CCCA (H.R. 3881). League President/CEO Carrie Hunt spoke directly to the congressman this week and urged him to reconsider. We joined the Virginia-based banking trade groups in a joint letter asking the same. You can help by urging your fellow credit union champions to email lawmakers today through our Action Center.

The Shutdown

By all accounts, there is no clear path to avoid a shutdown of the federal government in two days’ time. In meetings and communications with our Congressional delegation this summer, we urged them to avoid a shutdown. We know credit union members will be harmed, as will our regional economy. And while credit unions will step up and aid their members, the shutdown does pose challenges for credit unions, as well.

As in previous shutdowns, we’re collecting information about what you’re doing to aid members. Our short survey is here. Special thanks to Congressional Federal Credit Union, Eastman Credit Union, Justice Federal Credit Union, Navy Federal, Northwest Federal Credit Union, PenFed and US Senate Federal Credit Union for providing information.

Interest Rate Cap Amendments

Interchange wasn’t enough. Two Senators are seeking to attach interest rate cap legislation to a spending package previously passed by the House. One amendment would cap credit card interest rates at 18%, inclusive of all finance charges. Another bill would take the “all-in” 36% APR limitation of the Military Lending Act and apply it to all consumer credit, with exceptions for car loans, mortgage loans, and federal credit union loans subject to the 18% interest rate cap. We’ve voiced our opposition to these amendments with Senators Waner and Kaine, as have CUNA and NAFCU in joint trade letters.

League's CEO Summit Welcomes CUNA's Jim Nussle for Discussion on Federal Advocacy Issues, Proposed Merger Between CUNA, NAFCU

The League yesterday welcomed CUNA President/CEO Jim Nussle to the CEO Summit to discuss a host of pressing federal advocacy issues, including interchange, as well as the proposed CUNA/NAFCU merger.

Nussle noted the challenges credit unions face on both the legislative and regulatory fronts at the federal level, with interchange, various attacks on non-interest income, proposals to cap various interest rates, data security and privacy, and credit unions’ growing regulatory burden leading a long list of concerns.

Senate Committee Passes Cannabis Banking Bill; Warner Votes in Favor of Measure

The SAFER Banking Act, which would aid financial institutions in serving legal cannabis businesses, passed the Senate Banking Committee this morning in a 14-9 vote. Sen. Mark Warner (D-VA) voted in favor of the bill. This marks the first time the Senate has considered the legislation. An earlier version, the SAFE Banking Act, had passed the House seven times previously. The legislation went through several amendments during the markup as lawmakers wrestled with the appropriate amount of authority banking regulators should have, among other concerns.

CEO Forum Set for Oct. 17; Registration Open

Our exclusive event for small- and mid-sized credit unions returns to Richmond on Oct. 17! Programming will include an update on NCUA priorities; an economic update; data analytics in a rising rate environment; regulatory issues; cybersecurity issues; and much more. You can register here!

Financial Well-Being for All Boot Camp Oct. 25; Registration Open

Your members need you. But are you missing opportunities to meet them where they are in their life and financial journeys? Our Boot Camp offers training on identifying and categorizing a member’s financial health so you can tailor your product and service offerings to better meet their unique needs. We’ll also take a deep dive into the Financial Health Pulse survey to uncover actionable insights on consumer health in the U.S. HumanKind will provide an overview of their Economic Resource Center and the services credit unions can leverage to aid members. We’ll also outline an exciting new opportunity through our friends at Vizo Financial, which is offering as much as $5,000 in grant funds to support credit unions’ financial education initiatives.

In Other News …

• ABNB Announces Staff Promotions in Digital Services
• Justice Federal Credit Union Announces Special Assistance for Members Furloughed in the Event of a Federal Government Shutdown
• Scan Me, Win Me Car Giveaway Announces Lucky Winner of 2023 Toyota Camry
• League InfoSight Highlight: Automated Cybersecurity Evaluation Toolbox
• NCUA Releases Update to Its Simplified CECL Tool
• NoVA EPN Members Welcome Veterans to Washington