The Huffington Post news and opinion website has posted a new column from CUNA CEO Bill Cheney on the costs to credit unions and consumers of the coming rules on debit card interchange. See below for a link to the full article. Here is an excerpt:
“Some recent media reports have said small banks and credit unions are the big winners in the regulatory battle over how much revenue financial institutions should derive from the use of debit cards. (In industry terms, this is known as debit interchange revenue). Credit unions and small banks have a deserved reputation for being consumer-friendly. So logic would dictate that if you’re a credit union member or a small-bank customer, you should be feeling pretty good, right?”
Posted by Pat Keefe on Wednesday, 29 September, 2010
Watch as CUNA President and CEO Bill Cheney urges consumers to “read the whole story” about NCUA’s actions on corporate credit unions–not just the headlines–about NCUA’s actions Sept. 24 to stabilize, resolve and reform the corporate/wholesale credit union system.
Cheney assures credit union members that the consumer credit unions they use every day “have not been affected” by the NCUA actions.
I just talked to the Federal Reserve Board staff this morning and was very clearly told that the Fed and Treasury Department will be going forward with the June 1 effective date for their Internet gambling rules.
As you recall, the agencies were urged by a few members of Congress (the key one being Barney Frank who wants an alternative approach) — and trade associations, including CUNA — to postpone the IG regs. Days before the Dec. 1, 2009 effective date, the agencies did postpone the rule for six months, and many of us thought the rule could very well be postponed again to see what Congress might do. However, a few weeks ago, the Washington Post reported that Treasury had agreed to implement the IG rules to get a Senator to remove his holds on some senior Treasury positions that need Senate confirmation. That news item gave us a big hint that we should expect the IG regs to move ahead — which the Fed has confirmed today.
I think that credit unions were already on top of their IG compliance responsibilities last fall — mostly having policies in place to know your accountholders and to follow your card processors’ implementing procedures. You can get more information on CUNA’s e-Guide under the “Internet gambling” topic.
Valerie Moss is the Director of Compliance Information for the Credit Union National Association.