The head of a small Minnesota credit union, who also is a director of his state league, warned Thursday that Congressional inaction on interchange has forced a complete rethink on checking and debit products for small CUs, even possible elimination of the service.
Speaking out on Wednesday's Senate vote failing to delay interchange. David Sawin, president/CEO of St. John's Credit Union, Little Canada, stressed that while his own CU has no plans for now to alter its checking product lineup, the consequences of Congressional failure on the cap are widespread for the industry.
"All credit unions will be watching closely to see how the implementation of this new rule plays out in the marketplace but as a $19 million credit union, we stand to lose $22,000 per year in interchange income and if that happens we will need to decide how to respond," declared Sawin.
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