Fed Exemption on CU Card Rates Wins Backing
A day after new regulations from the new CARD act went into effect, credit unions are getting media support on getting exemption from Federal Reserve interchange rate rules.
The backing comes from a San Antonio business writer who contends CUs are being unfairly victimized by the rules since CUs and their members are having "to help pay for the sins of the other financial institutions that actually caused the massive harm that unfolded two years ago."
The comments of writer David Hendricks, in his "My SABusiness" column appearing in the San Antonio Express News Saturday, are highlighted this week in e-mail bulletins of the Texas Credit Union League.
In the Express News article headlined, "Credit Unions Await Interchange Rules," Hendricks maintained CUs "held their collective breath hoping they wouldn't be harmed" by language in the bill and consumers in San Antono, "a large credit union bastion also sweated the financial reform."
But the end result, wrote Hendricks, is that the law designed to hurt banking's "big shots" has unintended consequences for CUs and smaller fincancial institutions.
"If a small credit union receives only $600 a year in interchange fees, that can be wiped out and surpassed with a single fraud claim," wrote Hendricks.
The new financial reform law orders the Fed to produce rules that will reduce interchange fees and "credit unions hope, rightfully, that they will be exempted," Hendricks concluded.