MILWAUKEE, Wis.–Representatives from America’s Credit Unions are on hand here this week for the Republican National Convention.
The trade group has always been non-partisan when it comes to president elections and said it is instead focused on Congress, with many congressional GOP members in Wisconsin for the event.
Due to the convention, Congress is not in session this week.
‘Engagement With Policymakers’
“There is a lot of engagement with policymakers at the Republican National Convention and, as you know, building relationships is an incredibly important part of how we do our advocacy,” Carrie Hunt, chief advocacy officer with America’s Credit Unions, said during a call with the media. “Making sure that we are witnessing some of the dialogue and being part of the dialogue that takes place there and being part of the system is important. It’s really about meeting with members of Congress and witnessing the power of constituents who support certain platforms. America's credit unions is of course a bipartisan organization and we need to make sure that we understand the pulse of credit union members, no matter what party they affiliate with.”
Hunt said America’s Credit Unions will also be on hand when the Democrats hold their national convention in August in Chicago.
Continuing to Watch NDAA
Hunt added that while Congress isn’t in session the trade group is watching to see if the Senate will invoke cloture to move the National Defense Authorization Act (NCAA) forward. To date, that legislation has not included any of the amendments opposed by America’s Credit Unions, such as amending the Federal Credit Union Act to allow for non-credit union deposits to receive deposit insurance coverage.
DCUC Sends Letter Sharing Opposition to CCCA
Separately, the Defense Credit Union Council, DCUC has sent a letter to Senate Majority Leader Charles Schumer (D-NY) and Senate Minority Leader Mitch McConnell (R-KY) voicing its strong opposition to the proposed NDAA study which seeks to bolster the Credit Card Competition Act, CCCA.
In the letter, DCUC expressed its concerns regarding the amendment proposed by Senator Roger Marshall (R-KS), which DCUC said it “strongly believes exploits military and veteran communities to benefit big box lenders and e-commerce giants. The proposed study seeks to examine credit and debit card user fees imposed on veterans and caregivers at commissary stores and MWR facilities, under the misleading pretext of what DCUC believes will reignite calls by merchants for cheaper, unsecure networks with zero accountability.”
Points Clarified
The Defense Council said it clarified several points in its letter, including:
- That the DCUC believes the study on the user fees in question is misleading, as the fees are covered by negotiated special pricing on interchange between the Defense Commissary Agency (DeCA) and various brands/networks. “Thus, it is the federal government, not consumers themselves, who pays these fees at commissaries and MWR facilities. The federal government should continue to do so in recognition of these heroes,” DCUC wrote.
- DCUC raised concern as to the proposed study’s potential to create significant privacy issues as it seeks to access consumer data that is strictly protected under industry regulations and compliance standards.
- Citing security implications, DCUC advised against imposing price controls on interchange as it could “lead to transactions being routed through less secure networks lacking robust consumer protections and rewards.
“Instead, commissaries and military exchanges will route transactions over the cheapest networks – many of which have underinvested in their platforms with little concern for security innovations or consumer benefits,” the Defense Council said.
- DCUC said any conclusions drawn from the study are likely predetermined and unlikely to result in lower prices or improved financial services for consumers.
‘Reject the Hollow Call’
“Our nation’s defense credit unions understand that now more than ever we need to put our nation’s servicemembers first and reject the hollow call for new laws that would make basic financial services even more expensive for working-class Americans,” said DCUC President and CEO Anthony Hernandez. “We urge you to stand with us and stand up to the powerful interests pushing this by rejecting this legislation and study proposal. It has no business in the NDAA or other must-pass legislation.”