Lizeth GeorgeSoutheastern credit unions look forward to joining thousands of peers in Washington D.C. to make a difference at the Governmental Affairs Conference from March 3 – 7. While on Capitol Hill meeting with lawmakers, our legislative priorities will include the following:
- Oppose the Credit Card Competition Act
The Credit Card Competition Act (S. 1838/H.R. 3881) is an effort to regulate the credit card routing market, making the payments system less secure and leaving consumer data vulnerable to fraud. As financial institutions remain responsible for fraud and data security losses that stem from breaches caused by retailers who do not secure their payment data, interchange fees cover the cost of fraud detection, credit monitoring, fraudulent purchase protection, and more.
- Support FSGG Language to Cut Down on Financial Fraud
Language included in the Financial Services and General Government (FSGG) bill urges the Treasury Department to establish a public-private partnership with the goal of enhancing Americans’ financial security and reducing financial fraud and scam schemes. This partnership would involve financial institutions, state and federal regulators, consumer protection agencies, law enforcement, trade associations, and other stakeholders. Together, these entities would work to increase information sharing, develop best practices, raise educational awareness of fraud schemes, and promote innovation in counter-fraud technologies.
- Increase Congressional Oversight of CFPB
Bringing the agency under the traditional appropriations process, as opposed to its current funding from the Federal Reserve, and requiring a Senate-confirmed Inspector General would increase accountability. Establishing a five-member Board of Directors for the Consumer Financial Protection Bureau (CFPB), as opposed to the current single Director-led structure, would provide consistency among other financial regulators, and allow a more diverse and deliberative decision-making process.
- Reverse Efforts to Restrict Access to Critical Overdraft Services
The CFPB has introduced a proposal that would cap overdraft fees, eliminate competition in the financial services marketplace, and push consumers into the hands of predatory lenders. Efforts to restrict access to critical overdraft services will inhibit credit unions from helping members overcome unexpected financial emergencies and manage their daily lives.
- Support the Veteran Member Business Loan
Credit unions are currently only able to lend up to 12.25% of their assets due to outdated law. The Veteran Member Business Loan Act (S. 539/H.R. 4867) would exempt loans made to veteran-owned businesses from this cap, allowing credit unions to better serve those who defend and protect us. Veterans have cited accessing capital as a top challenge in starting and growing a business, and 60% of veteran owned businesses report facing a financing shortfall (receiving less financing than requested).
If you have any questions about these legislative priorities, please contact Grace Newcombe.
