The two major credit union trade groups launched ads Monday targeted to reach lawmakers in Washington, D.C., to oppose efforts to limit swipe fees and cap credit card interest rates.
Sens. Dick Durbin (D-Ill.) and Roger Marshall (R-Kan.) re-introduced the Credit Card Competition Act Jan. 13 to limit swipe fees, which they said cost families $1,200 a year. Marshall said the bill has the support of President Trump.
Trump also voiced his support for a 10% cap on credit card interest rates in January, but made no mention of it in his State of the Union address Feb. 24.
Those proposals are being attacked in ads from America's Credit Unions and the Defense Credit Union Council, putting the movement in lockstep with banks.
AmCU's nationwide digital advertising campaign includes digital video, online radio and targeted newsletter placements running nationwide, directing consumers to contact lawmakers through an advocacy action alert opposing the proposed credit card mandates.
This week, in conjunction with AmCU's GAC conference, the association is sponsoring Politico Morning Money and The Hill Morning Report to urge lawmakers to oppose the Credit Card Competition Act.
"The Durbin-Marshall credit card mandates are a solution in search of a problem that will ultimately make credit less accessible and everyday purchases less secure for middle class families," AmCU President/CEO Scott Simpson said. "Credit unions are hearing directly from their consumer members who are concerned about fraud, rising costs, and maintaining access to safe and affordable credit. This campaign ensures that consumers and policymakers alike understand what is at stake."
Digital ads are running in the districts of more than 70 lawmakers in both the House and Senate, with additional placements in the Washington, D.C., market during GAC.
Meanwhile, the Defense Credit Union Council (DCUC) is running a targeted advocacy advertising campaign in POLITICO Monday through Friday to reinforce DCUC's opposition to the Durbin–Marshall swipe fee bill and Trump's credit card rate cap proposal.
The in-newsletter ads warn policymakers that the proposals would increase fraud risk, restrict access to affordable credit, eliminate rewards programs and hand a significant financial windfall to corporate mega-retailers, all at the expense of consumers, small businesses, community financial institutions and military families.
"Congress must fully grasp the far-reaching consequences of rewriting our nation's payments system," DCUC President/CEO Anthony Hernandez said. "The Durbin-Marshall proposal and sweeping interest rate cap measures would not reform the system; they would destabilize it.
"These policies threaten to weaken fraud protections, restrict access to credit and disproportionately harm underserved communities, service members, veterans, and working families who rely on credit unions for safe, mission-driven financial services."
Hernandez said credit card rate caps would "reduce access to affordable, reliable and safe credit across America, particularly for those with limited options."
Contact Jim DuPlessis at Jim.DuPlessis@arc-network.com.
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