Wednesday, March 16, 2011 11:40:00 AM
WASHINGTON - Legislation that would delay the effective date of a Dodd-Frank Act interchange rule by two years to allow for more time to study its potential impact was introduced in the both houses of Congress yesterday.
President/CEO Bill Cheney said last night that the proposed interchange delay gives credit union members and other consumers "a ray of hope that the debit card programs they have come to appreciate may continue unchanged, at least for the short term."
He urged House and Senate lawmakers to support the legislation that would extend the rulemaking timeline and effective date of proposed interchange fee regulatory changes.
The Senate bill, the Debit Interchange Fee Study Act (S. 575), would establish a two-year delay to study the impact of any proposed interchange rule changes. The House bill (H.R. 1801) would create a one-year delay. While the Senate bill simply requires a report be submitted to Congress, the House bill would require the Fed to write new interchange regulations within four months if the study found the proposed exemption for financial institutions with under $10 billion in assets would not be effective. The regulations would also need to be rewritten if it found that the Fed's proposal did not encompass all debit card-related costs or would harm consumers.
CUNA has issued a Call-to-Action. New Jersey credit union professionals, volunteers, and members are encouraged to visit the NJCUL's Online Grassroots Action Center at http://www.capwiz.com/cuna/nj/home where they quickly e-mail their lawmakers on this is important issue.