Congressional Research Service Outlines Consequences of CCCA
Posted by Ryan Fitzgerald on December 22, 2023
Last week, Congress’s own independent research and analysis entity the Congressional Research Service (CRS) released a report outlining the negative outcomes that would befall consumers if the interchange legislation led by Senators Dick Durbin (D-IL) and Roger Marshall (R-KS), Representatives Lance Gooden (R-TX-5) and Zoe Lofgren (D-CA-19), were to pass.
As has been strongly outlined by GoWest, CUNA, NAFCU and other financial service organizations to our delegation on Capitol Hill, the Credit Card Competition Act (S. 1838 / H.R. 3881) will be a huge windfall for mega-retailers at the expense of security in the payments ecosystem and significantly impact the financial wellbeing and services available for everyday consumers.
This is the third major report outlining the negative impacts of expanding the Durbin Amendment to include credit cards, while forcing payment network decisions to be made by government mandate versus by the businesses that have contracted for services. The following reports all point to the significant pitfalls that would be caused by the passage of the so-called “Credit Card Competition Act”:
Cornerstone Advisor Report – released in late July 2023
Progressive Policy Institute Analysis – released in late September 2023
CRS In Focus Analysis – released on December 13, 2023.
The aforementioned reports continue to outline the failed policy around Interchange price fixing and forced network choices, while providing the data to oppose any further expansion of the Durbin amendment.
As we look to the new year, the GoWest Advocacy team will continue to work collaboratively with our national counterparts on this very important issue, while also tackling the proposed rules by the Federal Reserve Board to reduce current Interchange income to covered entities.
Thank you, again, for your continued advocacy leadership in this area, and we will continue our fight for a positive outcome for our credit unions.
Happiest of holidays to you and yours and we look forward to working closely with you in 2024!