The Defense Credit Union Council isn’t mincing words about Puerto Rico’s H1216 bill, and they’ve got some serious concerns about what it could mean for your account.
In a letter fired off to Puerto Rico House leaders, the DCUC laid out why they think this proposed legislation could end up doing more harm than good—especially for military families, small businesses, and the credit unions that serve them.
What’s the Big Deal?
Here’s the setup: H1216 wants to exclude taxes and gratuities from interchange fees on electronic transactions. Sounds technical, right? Think of interchange fees as the behind-the-scenes cost that makes your card swipes possible. This bill would change how those fees work, and according to DCUC, not in a good way.
The worry? This could throw a wrench in the payments system, drive up costs, and make financial services harder to access for the people who need them most.
Why Military Families Should Care
“For military families, financial stability is not a side issue, it is part of mission readiness,” said Anthony Hernandez, DCUC President and CEO (and retired USAF Colonel). That’s a pretty powerful statement, and he’s not wrong. When you’re dealing with deployments, constant relocations, and the general chaos that comes with military life, the last thing you need is your financial institution getting squeezed by poorly thought-out regulations.
Hernandez put it bluntly: policies that mess with the payments system or weaken military-serving credit unions don’t just cause inconvenience—they impact readiness, resilience, and the ability of military households to stay financially stable.
The Laundry List of Concerns
Jason Stverak, DCUC’s Chief Advocacy Officer, spelled out exactly what’s got them worried about H1216:
- Market distortions that would hit credit unions especially hard
- More red tape through increased operational and compliance burdens
- Payment system fragmentation that could create confusion and inefficiency
- Cost shifting that would likely land right in consumers’ laps through higher fees or fewer services
In other words, this bill might be trying to help consumers, but it could end up doing the opposite.
Credit Unions Aren’t Just Banks
Here’s something worth remembering: credit unions serving military communities aren’t just in it for profit. They’re mission-driven institutions focused on financial readiness and inclusion. They’re there during deployments, during cross-country moves, during those stressful transitions that define military life.
“We urge policymakers to pursue solutions that protect consumers without undermining the secure, efficient payments infrastructure families and businesses depend on every day,” Stverak added.
It’s a reasonable ask. Find ways to help consumers without accidentally blowing up the system that serves them. Seems like the kind of balance worth striving for.