Full Steam Ahead: Pushback Against Regulatory Overreach Continues

Over the last few months, the League of Southeastern Credit Unions (LSCU) has organized vigorous opposition to the Federal Reserve’s proposal to place a restrictive cap on debit card interchange fees. Now, the comment deadline is just a few weeks away – May 12 – and we’re calling on members one last time to make sure their voices are heard.

The current proposal would slash debit card interchange fees by more than 30%, severely jeopardizing credit unions’ mission to empower members and help consumers achieve their financial goals. Changing the interchange cap, in this era of increased interest rates, increased inflation, and rampant fraud, will only make things more challenging for both credit unions and consumers alike.

In February, LSCU, with the help of its Regulatory Working Group, provided a template letter to respond to the Federal Reserve. To date, dozens of credit unions have already sent letters in opposition to the proposal, and we’re asking for a final push for comments from across Alabama, Florida, and Georgia. If you haven’t had the chance to weigh in on this disastrous proposal, please contact Mat Willey, Manager of Regulatory Advocacy, for a customizable template and instructions on how to submit your comment.

In addition to our grassroots work, LSCU’s Vice President of Federal Advocacy and Communications, Grace Newcombe, teamed up with the Georgia Bankers Association and the Community Bankers Association of Georgia to send a joint letter to key members of Congress urging them to reject this proposal and “slow down and check its work.” Finally, LSCU is supporting legislative efforts that prevent finalization of the rule until a study can be conducted on the impact to consumers, ability for financial institutions to prevent fraud, access to low-to-no-cost financial services, and more.

Further, we have worked to spotlight credit union and community leaders, including Credit Union of Atlanta President and CEO Debra Collins, Robins Financial Credit Union President and CEO Christina O’Brien, the Urban League of Greater Atlanta, the Partnership for Southern Equity, and more, to show the full impact of this proposal on credit union members, low- and middle-income families, disadvantaged communities, and more.

LSCU will continue to fight back against unnecessary regulatory red tape and sincerely appreciates our members’ support in these efforts.