The President’s Perspective

We need your help to deliver a message to Congress that the Credit Card Competition Act is bad for consumers. Plus, ND credit unions asked to reply to micropreemie unit pledge. 

Action Alert – please send a message today!
Greetings, I need to quote the great Yogi Berra and say, “It’s déjà vu all over again.” It was just over a decade ago that we were fighting the Durbin interchange amendment. In fact, it was passed in 2010 – and now, Durbin 2.0 will once again make this the summer and fall of interchange.
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In just one short week, we leapt from the frying pan into the fire. Last week we were moving on from debt ceiling waiver and just like that, we turn to fighting for credit card interchange as Senators Durbin (D-IL) and Marshall (R-KS) reintroduce the Credit Card Competition Act, the very same interchange bill we quashed just last year.
 
Prior to the bill being introduced, CUNA and the Leagues worked ahead to deliver strong messages to lawmakers as the nation’s grocers came to DC – including questions to ask about the realities of interchange and data security. The CUNA League system also joined with several other financial services trade organizations to warn lawmakers about the harmful impact this legislation that expands interchange price controls will have on consumers, credit unions, and other financial institutions.
 
In a letter to lawmakers, we highlighted the Government Accountability Office (GAO) report that found the 2010 Durbin Amendment was “among the top five laws and regulations most cited as having significantly affected the cost and availability of basic banking services.” The letter also shared, “the merchant lobby’s promise that this regulation would result in savings for consumers never happened – the merchants pocketed the savings. According to the Federal Reserve Bank of Richmond, after the Durbin Amendment was implemented, 98.8% of merchants failed to pass through savings realized from debit regulation to consumers, and over 20% increased prices.”
 
Even though this bill limits these new requirements to institutions over $100 billion in assets, we flagged that, under the Durbin Amendment, “community banks and credit unions still suffered a 30% decrease in their interchange revenue.” Not to mention opening payment systems to benefit big box stores while hurting consumers and small businesses.

Here in the Dakotas, we reached out to our Senators and shared that the Credit Card Competition Act of 2023 will have serious consequences for credit unions and their members if passed. We strongly oppose this legislation and need your help telling Congress how changes to interchange would negatively impact your credit union and members. If you haven’t already done so, please visit the Grassroots Action Center today and send a message to your legislators.

ND credit unions supporting Sanford Children’s Hospital new micropreemie unit.
Go big and don’t be afraid to be bold! That was a statement shared by CUNA Board Chair, Lisa Ginter, on stage at our Annual Summit meetings in May. Last week, we did just that. We launched an opportunity for credit unions to make a major impact in our service region. Those who attended the virtual meeting last week with representatives from Sanford Children’s Hospital, Sanford Health Foundation, and the Director of CMN Strategic Partnerships, heard all about our big, bold credit union campaign to raise $1 million for a new micropreemie care unit in Fargo. This exciting venture will help save lives and have a long-lasting impact in our state and community. In addition, we will be getting recognition and a lot of publicity, as we will have exclusive naming rights for the entire treatment area. This is an incredible credit union awareness and public relations opportunity for all involved, not to mention helping to serve our state’s most vulnerable children closer to home.

North Dakota credit unions should have received a pledge letter which is weighted among our credit unions according to asset size. Please be sure to respond to that letter so we are able to see where we are at with the pledge numbers. The recorded version of the virtual presentation is available here if you missed the call or would like to share with your team and/or board members. If you have any questions on this effort, don’t hesitate to contact me or any of our Marketing & Communications team. There is an urgent deadline for ND credit unions to opt in on this campaign; your prompt reply is appreciated.  

FOM Conversion & Expansion Learning Session
Your Association will host CUCollaborate on Tuesday, June 27 at 10:00 a.m. (CT) for a learning session to discuss Field of Membership Conversion and Expansion issues. CUCollaborate consultants will explain the processes involved in converting from a state charter credit union to a federally chartered credit union, as well as options for FCU expansion opportunities, including special rules for low income designated credit unions. This is a free event exclusively for DakCU affiliated credit unions. Register here.

Congratulations to ND DFI Commissioner Lise Kruse.
The national Conference of State Bank Supervisors (CSBS) recently elected North Dakota Department of Financial Institutions Commissioner Lise Kruse to chair its board of directors for 2023-24. CSBS is the national organization of bank regulators from all 50 states, plus American Samoa, District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands. Kruse was appointed commissioner of the Department of Financial Institutions by Governor Doug Burgum in October 2017. She previously served as the department’s chief examiner of banks since 2011 and was originally hired by the department as an examiner in 2004. Since 1887, the Department of Financial Institutions has regulated North Dakota’s financial institutions, which include state-chartered banks and credit unions, trust companies and non-depository financial institutions.
 
Have a great week! 

DakCU President/CEO