Greetings and welcome to May. Sunday was the first of May, or May Day, which is not only a celebration of the spring season for many cultures around the world, but is also a day of unity, togetherness, rebirth, and a great time to celebrate life. Happy May Day!
We are now just eight days away from our Annual Summit conference and we are excited for the opportunity to reconnect with friends and come together for industry dialogue. Safe travels and we will see you soon!
Download DakCU Mobile app now!
Don’t forget to download our new DakCU Mobile app. This interactive tool for your mobile device puts all Summit information at your fingertips! Be sure to opt-in for push notifications if you want to be notified when your selected sessions are about to begin and for any last-minute important announcements. The app is available for both Apple and Android devices, and if you have any questions, don’t hesitate to contact Lindsey Hefta, our Director of Marketing.
Credit Card Interchange takes center stage this week.
On Friday, the Dakota Credit Union Association joined the CUNA-League system in issuing a system-wide action alert calling on the Senate Judiciary Committee to oppose any changes to the current interchange system ahead of the committee’s hearing on Wednesday. The hearing is titled “Excessive Swipe Fees and Barriers to Competition in the Credit and Debit Card Systems.”
Here is the issue: Consumers here in the Dakotas and across the country rely on credit cards, from everyday purchases to covering emergency expenses. Credit cards offer security, fraud protection, and access to credit that may not otherwise be available. Interchange fees are only a fraction of a cent per dollar transacted and are necessary to cover the cost and expenses to keep consumers, merchants, and financial institutions safe in cyber transactions.
The reality is that interchange fees cover the cost of fraud detection, credit monitoring, and fraudulent purchase protection for both consumers and merchants, covering losses when fraud occurs. In 2020, over 300 million individuals were affected by data breaches and fraud rates have doubled since 2011. Changes to the interchange system will make it harder for people to access credit, increase costs to small businesses, and pose security risks.
Therefore, we are asking credit unions and members to engage our Dakotas congressional delegation, primarily Senators Hoeven and Cramer (ND) and Thune and Rounds (SD). While none of our Delegation sit on the Senate Judiciary Committee, we do have two prominent members of the Senate Banking Committee in Senators Rounds (R-SD) and Cramer (R-ND) that need to continue to hear our concerns, along with Representatives Armstrong (ND) and Johnson (SD) as this discussion heats up. I urge you to contact your congressional delegation now. Click here to send a message.
CFPB Director confirms a deeper dive into fees, cards and more.
Following a contentious hearing in the Senate, CFPB Director Rohit Chopra appeared in front of the House Financial Services committee the very next day and reaffirmed the department’s probe into “junk fees.” The director defines junk fees as a charge “that is not subject to the full competitive process, and specifically for services you may have never asked for or its cost is way in excess of what a competitive market would offer.” Chopra added that the Bureau is concerned over “fee creep,” which are fees that come as a surprise to many consumers. He has asked his staff to investigate where the Bureau can reopen CARD Act rules related to any changes that are needed.
Discover2022 Open for Pre-Registration
Our system partner, CUNA Mutual Group announced that pre-registration is open for their 13th virtual conference, Discovery2022 taking place on August 11th. Sign up now and enjoy a full day of strategic insights, with FREE admission. This year’s agenda promises some sought-after topics such as: Economic and financial market outlook; Credit unions and cryptocurrencies; Financial wellness for your members; Overdraft programs and credit union best practices; and Creating a strong culture in remote environments. I encourage you to take advantage of this networking opportunity that will undoubtedly help with your strategic planning.
Congrats to First Community CU!
First Community CU has announced the opening of their all-new Mandan location. Located at 4614 Memorial Highway, the new facility is three stories high, over 20,000 square feet, with many features that will not only benefit the FCCU staff, but the community as well! Congratulations to Steve Schmitz and crew on this huge undertaking. The new building looks great!
Kudos to Jennifer Walz
I want to send a “shout out” to Jennifer Walz, VP of Operations at Minuteman FCU (Rapid City, SD), who recently completed her Credit Union Compliance Expert (CUCE) certification through CUNA. She is going to continue her education by attending CUNA Management School starting in July. Congratulations Jennifer, and best of luck as you begin the next rigorous training round!
Retirement is bittersweet!
Last week, Wendy Arne, Executive VP at North Star Community CU (Maddock, ND) officially retired after 35 years. Wendy was one of the first five employees at North Star (which was Benson County Co-op CU when she started) and has been a big part of the credit union’s growth and success. It’s always hard to see such a vital credit union advocate leave, but we wish her the best in this next chapter of her life. Congrats Wendy, and best wishes!
Have a great week, and be sure to reach out to our congressional representatives on the Interchange Alert.
The Memo is DakCU's newsletter that keeps
Want the Memo delivered straight to your inbox?