Your Leadership Link

Updates on key issues impacting credit unions, including interchange fees, housing, fintech, and regulatory reform.

From the Dakota Credit Union Association (DakCU) and America's Credit Unions 

Your Dakota Credit Union Association (DakCU) continues working in close coordination with America’s Credit Unions, league partners, and industry stakeholders to monitor federal activity and advocate on the issues that matter most to Dakota credit unions and the members they serve.

The past week brought several significant developments impacting credit unions at both the federal and state levels, including major movement from the NCUA on interchange fee preemption, continued congressional action on housing legislation, and ongoing advocacy efforts surrounding payments, fintech, and regulatory modernization.
 
NCUA Advances Interim Final Rule on Interchange Fee Preemption
In one of the most closely watched developments, the National Credit Union Administration (NCUA) advanced an interim final rule related to “Preemption – Federal Credit Union Non-Interest Charges and Fees.” The rule was submitted to the Office of Management and Budget for review on May 18 and is widely expected to address protections for federal credit unions related to the Illinois Interchange Fee Prohibition Act (IFPA).
 
The anticipated action mirrors recent steps taken by the Office of the Comptroller of the Currency (OCC), which formally preempted the Illinois law for national banks and reaffirmed federal authority over interchange-related fee powers.
 
Credit union trade organizations strongly welcomed the move. Defense Credit Union Council Chief Advocacy Officer Jason Stverak said the action would help preserve “a clear and uniform national framework” for payment services, while America’s Credit Unions President/CEO Scott Simpson noted the rulemaking confirms federal preemption protections for federal credit unions related to interchange fees.
 
The Illinois IFPA, scheduled to take effect July 1, restricts interchange fees on tax and gratuity portions of card transactions and places limitations on payment-card transaction data usage. Ongoing litigation surrounding the law continues in federal court.
 
Congress Advances Housing Legislation with Credit Union Priorities
On Capitol Hill, the House passed the bipartisan 21st Century ROAD to Housing Act with strong bipartisan support. The package includes several credit union-backed provisions, including language from the Credit Union Board Modernization Act, the Advancing the Mentor-Protégé Program for Small Financial Institutions Act, and the American Access to Banking Act.
 
America’s Credit Unions voiced support for the legislation and continues encouraging lawmakers to pursue additional reforms related to de novo credit unions, Federal Home Loan Bank and Central Liquidity Facility access, and loan maturity limits.
 
Meanwhile, Senate efforts to advance a limited “Reconciliation 2.0” package stalled prior to the Memorial Day recess following disagreements surrounding funding provisions. Discussions are expected to resume when lawmakers return in early June.
 
Advocacy Continues on BSA Reform and Financial Technology
America’s Credit Unions also submitted comments to Congress last week regarding Bank Secrecy Act modernization and financial institution-fintech partnerships.
 
In testimony related to BSA modernization, the organization urged lawmakers and FinCEN to reduce regulatory burdens by increasing Currency Transaction Report (CTR) and Suspicious Activity Report (SAR) filing thresholds, simplifying reporting requirements, and focusing anti-money laundering compliance efforts on actual risk.
 
Additional comments submitted during a House Financial Services subcommittee hearing encouraged responsible innovation in fintech partnerships while promoting fair competition between regulated financial institutions and non-depositories.
 
NCUA Consumer Assistance Center Concerns Raised
America’s Credit Unions also raised concerns with the NCUA regarding increased misuse of the agency’s Consumer Assistance Center (CAC). According to the organization, AI-generated search results and social media trends are increasingly directing consumers to file complaints with the NCUA before attempting to resolve issues directly with their credit union.
 
The organization recommended updates to complaint procedures and consumer guidance to reinforce that members should first work with their credit union before escalating concerns to regulators.
 
Congress is now in recess for Memorial Day week, with advocacy efforts and legislative negotiations expected to resume in June.
 
Staying Engaged
For questions please contact DakCU Chief Operating Officer George McDonald; or Director of Political Strategy and Engagement Kenley Lamberty.