The “Big Box Bailout Bill” gets a hearing in the Senate Judiciary Committee today, with America’s Credit Unions weighing in beforehand with Senators to share ongoing credit union opposition to the interchange legislation. 

Chairman Dick Durbin, D-Ill., scheduled the hearing in his final weeks at the head of the committee, and the list of people testifying does not represent community financial institutions – including credit unions. America’s Credit Unions President/CEO Jim Nussle submitted a letter to the committee in advance of the hearing, addressing the lack of representation despite the significant impact of interchange on credit unions.

“First, we would like to express the extreme disappointment of our nation’s over 4,000 credit unions that a hearing on a topic so important to the industry and the over 141 million credit union members in America is being held without a representative of credit unions invited to participate,” said Nussle.  “As such, we urge Committee members to view any discussion on interchange and the impact on community financial institutions at this hearing as incomplete.”

The letter reiterates credit union opposition to the misguided legislation. In particular, the bill is not about competition but instead aims to help big box retailers increase their profits at the expense of consumers and financial institutions.  Nussle urged lawmakers to reject this legislation. He also highlighted the fallout from the existing Durbin Amendment cap on debit interchange, which demonstrates the negative impacts of government intervention in the payments space. 

“Since the Durbin Amendment was enacted, we have seen consumer prices increase, consolidation among community banks and credit unions, and several small debit networks have gone out of business. Big box retailers and ever-expanding e-commerce giants have been the beneficiaries of a massive financial windfall,” Nussle wrote. 

Read the full letter here.

In addition, America’s Credit Unions signed onto a joint letter with the American Bankers Association (ABA) and other financial trade organizations. It calls on Congress to reject any attempt to expand the Durbin Amendment, as well as echoing disappointment with the lack of testimony from community banks or credit unions who will be harmed by the proposed law.