Defense Credit Union Council (DCUC) Letter to Senate: Proposed NDAA Study Exploits Our Nation’s Heroes

Today, the Defense Credit Union Council, DCUC, sent a letter addressed to The Honorable Charles Schumer, Senate Majority Leader, and The Honorable Mitch McConnell, Senate Minority Leader voicing its strong opposition to the proposed NDAA study which seeks to bolster the Credit Card Competition Act, CCCA.

In the letter, DCUC expressed its concerns regarding the amendment proposed by Senator Roger Marshall (R-KS), which DCUC strongly believes exploits military and veteran communities to benefit big box lenders and e-commerce giants. The proposed study seeks to examine credit and debit card user fees imposed on veterans and caregivers at commissary stores and MWR facilities, under the misleading pretext of what DCUC believes will reignite calls by merchants for cheaper, unsecure networks with zero accountability.

DCUC clarified several key points in its letter to the Senate earlier this morning.

DCUC stated how the study on the user fees in question is misleading, as these fees are covered by negotiated special pricing on interchange between the Defense Commissary Agency (DeCA) and various brands/networks. “Thus, it is the federal government, not consumers themselves, who pays these fees at commissaries and MWR facilities. The federal government should continue to do so in recognition of these heroes.”

DCUC also raised concern as to the proposed study’s potential to create significant privacy issues as it seeks to access consumer data that is strictly protected under industry regulations and compliance standards.

Security implications were another issue DCUC elevated to the Senators. DCUC advised against imposing price controls on interchange as it could lead to transactions being routed through less secure networks lacking robust consumer protections and rewards. “Instead, commissaries and military exchanges will route transactions over the cheapest networks – many of which have underinvested in their platforms with little concern for security innovations or consumer benefits.”

DCUC also emphasized that any conclusions drawn from the study are likely predetermined and unlikely to result in lower prices or improved financial services for consumers.

DCUC President and CEO Anthony Hernandez urged Congress to prioritize the interests of servicemembers and veterans by rejecting this legislation and study proposal, stating “Our nation’s defense credit unions understand that now more than ever we need to put our nation’s service members first and reject the hollow call for new laws that would make basic financial services even more expensive for working-class Americans. We urge you to stand with us and stand up to the powerful interests pushing this by rejecting this legislation and study proposal. It has no business in the NDAA or other must-pass legislation.”

DCUC continues to emphasize the critical role credit unions have in providing accessible financial services to their members, especially to our military and veteran communities nationwide.

Read the full letter here.