House Panel Moves Forward On Reporting Threshold Modernization As Credit Unions Push Back on Rate Cap Proposals
By CU Today Staff —
WASHINGTON--Reporting threshold modernizations important to credit unions moved forward as the House Financial Services Committee voted to advance two bills Thursday, America’s Credit Unions reported, noting it wrote in support of both bills in advance of to the markup, while urging the committee to reject any amendments establishing a national credit card rate cap or altering the credit card interchange system.
"We appreciate the Committee’s work during today’s markup to advance bipartisan legislation that modernizes outdated thresholds and reduces unnecessary regulatory burden on community-based financial institutions," said Scott Simpson, America's Credit Unions president/CEO. "While a national credit card rate cap amendment was raised during the markup, it was not advanced. That outcome reflects a growing understanding that hard price controls are not an effective way to improve affordability for consumers. Rate caps do not eliminate the underlying costs of providing credit. They simply shift those costs and restrict access, particularly for working families and consumers with thin or imperfect credit histories. We urge lawmakers to remain focused on policies that expand access to fair, affordable credit and avoid proposals that risk undermining the very consumers they are intended to help.”
As CUToday.info reported, an amendment to cap credit card interest rates at 10% was offered to H.R. 7056 by Ranking Member Rep. Maxine Waters (D-CA), but it was ruled not germane to the underlying legislation and not adopted. The Defense Credit Union Council early Thursday shared concerns about a possible 10% cap bill being introduced during the markup.
Originally reported by CU Today.