WASHINGTON–The Defense Credit Union Council (DCUC) has launched a targeted digital advertising campaign it said is designed to highlight the “risks and concerns” around adding the proposed Credit Card Competition Act (CCCA) language to the 2025 National Defense Authorization Act (NDAA).
The CCCA is sponsored by Sen. Dick Durbin’s (D-IL) and Sen. Roger Marshall’s (R-KS), but the advertising messages target Sen. Jack Reed (D-RI), chairman of the Armed Services Committee and who also serves on the Senate Banking Committee. The ads are to run during the August recess in Reed’s home state of Rhode Island.
‘Long-Standing Position’
“DCUC’s campaign reaffirms its long-standing position that any CCCA-like amendments jeopardize important defense-related legislation while attempting to enrich the largest multinational retailers at the expense of our nation’s military and veteran consumers,” the Defense Council said.
It noted it has voiced its strong opposition to any CCCA-type legislation for several years, beginning with the "Credit Card Competition Act of 2022," and later countering additional amendments 6201 and 6174.
‘Lack of Monitoring’
“In its October 11, 2022, letter to the Senate, DCUC supported its opposition by calling attention to the lack of monitoring compliance concerning the original 2010 Durbin Amendment with respect to debit cards, referencing a 2014 survey conducted by the Federal Reserve Bank of Richmond,” DCUC stated, adding the letter also highlighted how the survey found a sizable fraction of merchants had raised their prices or imposed restrictions on debit card use to avoid paying debit interchange fees.
“This did not stop Senators Durbin and Marshall from continuing their attempts to amend the NDAA with their Credit Card Competition Act of 2023, and through other ‘must-pass’ legislation (HR 3881, and later, #1161 to the Military Construction, Veterans Affairs, and Related Agencies Appropriations Act,” the organization added.
Additional Letters Sent
DCUC added it has sent additional letters that “emphasized the shared concerns on how CCCA-type legislation will hurt consumers while benefiting big box retailers. DCUC and its joint trade partners explained how the amendments would lead to the removal of a consumer’s choice of preferred card network, wringing out the competitive differences among card products, limit popular credit card rewards programs, and place the nation’s private-sector payments system under the micromanagement of the Federal Reserve Board.
‘Circumvents Free Market’
“The Durbin-Marshall bill accomplishes this by using legislation to circumvent the free market to award private-sector contracts to a small handful of the sponsors’ favored payment networks to pad the profits of the largest e-commerce and multi-national retailers who are raising prices on American families far more than the real rate of inflation…” DCUC continued. “Contrary to its sponsors’ misguided claims, the adverse effects of this bill are clear: fewer options for consumers, greater threats to consumer data and privacy, weakened community banks and credit unions, and the disappearance of card rewards programs that families of all income levels use to stretch their budgets.”
The Defense Council said it has remained actively engaged on the issue.
‘Protecting Military Members’
“DCUC is proud to represent our industry in opposing this language while continuing to protect the financial and personal data of our military members serving around the world,” said Anthony Hernandez, DCUC President/CEO.
DCUC's letters to Congress on the issue can be found here.