Reintroduced Big Box Bailout would harm consumers, small businesses

Credit union efforts are already underway to oppose the Credit Card Competition Act, also known as the Big Box Bailout Bill, and defend consumers against its harmful provisions. Sens. Roger Marshall, R-Kan., and Dick Durbin, D-Ill., reintroduced their bill Tuesday after President Donald Trump endorsed it on social media. Reps. Lance Gooden, R-Tex., and Zoe Lofgren, D-Calif. also re-introduced their House version.  

The bills would create new credit card routing mandates that benefit large retailers while harming financial institutions, small businesses, and consumers by affecting data security, limiting access, and leading to higher costs. 

“America’s Credit Unions has long opposed the Credit Card Competition Act because it would disrupt a secure and competitive credit card system in ways that hurt consumers and small financial institutions, while benefiting Big Box retailers. The bill’s routing mandates will ultimately lead to increased fraud, reduced card rewards, and limited access to affordable credit for millions of credit union members,” said Scott Simpson, America’s Credit Unions president/CEO. “There’s no evidence this proposal would lower prices for consumers, but there is evidence this will benefit the largest retailers in the United States. The real risk is that it would weaken the payments system people rely on every day. Credit unions urge lawmakers to reject this approach and focus on policies that support a strong payments system while protecting consumers and financial choice.”

America’s Credit Unions also signed onto a joint letter of opposition, and issued a statement alongside other financial services trade organizations:

“One surefire way to make life less affordable for Americans would be to pass the misguided Durbin-Marshall credit card mandate, which would harm consumers, small businesses and the community financial institutions that drive local economies. Lawmakers have rightly rejected past attempts at legislation and amendments to mandate the reengineering of the nation’s trusted, resilient, and efficient credit card payments system just to boost the profits of the nation’s largest retailers. This Congress should again reject this harmful proposal. Anyone supporting Durbin-Marshall is voting to make credit card transactions less secure and to take away the credit card reward programs that make life more affordable for millions of Americans.”

Successful advocacy efforts have kept the Big Box Bailout from advancing, whether as a standalone bill or attached to other legislation. America’s Credit Unions will continue to advocate against the Big Box Bailout Bill, along with other policies that would reduce access to affordable credit.