The Defense Credit Union Council (DCUC) has submitted a formal letter for the record following the U.S. Senate Committee on Banking, Housing, and Urban Affairs hearing, “Update from the Prudential Regulators.”
On behalf of its member credit unions, DCUC outlined several key priorities discussed during the hearing “Rightsizing Regulation to Promote American Opportunity:”
Preserving the Credit Union Tax Exemption: DCUC urged Congress to maintain credit unions’ longstanding tax-exempt status, emphasizing that it enables not-for-profit institutions to reinvest earnings into member benefits. Eliminating the exemption, the letter notes, would increase costs and reduce services for military families and other consumers.
Opposing a 10% Interest Rate Cap and the Durbin–Marshall Credit Card Competition Act: DCUC expressed strong opposition to proposals such as a one-size-fits-all 10% credit card interest rate cap and the “Credit Card Competition Act.” The Council warned that an arbitrary rate cap would significantly restrict access to safe and affordable credit for servicemembers and other borrowers. It also cautioned that mandated interchange changes would reduce critical revenue used for fraud prevention, cybersecurity, and rewards programs—without guaranteeing consumer savings.
Supporting Padilla–Cramer CLF Legislation: DCUC voiced strong support for bipartisan legislation introduced by Alex Padilla and Kevin Cramer (S. 3575) to strengthen the NCUA’s Central Liquidity Facility. The Council praised the measure as a necessary step to enhance credit union system resiliency during periods of economic stress and encouraged swift enactment.
DCUC thanked the Committee for its leadership in examining how financial regulation can promote economic opportunity while safeguarding community-based institutions. The Council reaffirmed its commitment to serving as a resource to lawmakers and staff on issues impacting credit unions and the military and veteran communities they support.