WASHINGTON — Credit unions could exempt themselves from negotiations over interchange fees if they feel it would benefit them, according to an amendment introduced today during the House Judiciary Committee markup on the subject.
The panel is discussing H.R. 5546, the Credit Card Fair Fee Act, which would require the negotiation of an agreement on interchange fees between retailers and credit card companies. The amendment, which also applies to small banks, would also eliminate a controversial provision that said if both sides could not reach an agreement, they would have to submit to binding arbitration by a panel of judges appointed by the Department of Justice and the Federal Trade Commission.
House Judiciary Committee Chairman John Conyers (D-Mich.),who proposed the amendment, said it incorporates some concerns by opponents and his bill would "level the playing field" controlled by the two big guys, MasterCard and VISA.
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The panel's top Republican, Rep. Lamar Smith (R-Texas), said he opposed the measure and the panel shouldn't vote on the amendment before members and executive branch agencies can review it more closely.
CUNA and NAFCU oppose the bill because they contend that additional fees could cause credit unions to stop issuing credit cards, and thus limit consumers' options. Retailers contend the existing structure hurts consumers and violates existing anti trust laws.
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