In a step for advocacy, credit union leaders from across California’s 43rd District gathered this past Sunday for a roundtable with Rep. Maxine Waters (D-CA). The open dialogue highlighted the role of credit unions in the local economy, the members they serve, and the legislative hurdles currently facing the industry in Congress.
Waters expressed a deep appreciation for the credit union movement’s mission. She emphasized the gap-filling role that credit unions play, particularly for those who might be overlooked by large banks.
“Credit unions help people that big banks don’t want to be bothered with,” Waters said at one point during the discussion. “I appreciate that credit unions make sure the average person can access capital.”
The congresswoman continues to display a strong understanding of credit unions and the importance of the industry’s tax exemption. Several regulatory issues that impact credit union operations and member security were also part of the discussion. Leaders shared the impact from the 2011 Durbin Debit Interchange regulations over the past several years, highlighting how these rules have affected their capacity to serve members and contributed to debit card fraud.
Additionally, the group discussed a bipartisan proposal circulating in Congress that aims to cap credit card interest rates, with credit union leaders expressing concern regarding the unintended consequences of such a cap. Advocates shared that capping credit card interest rates could limit credit availability for underserved communities.
In fact, the Electronic Payments Coalition (EPC) found that 82-84 percent of credit card holders are likely to lose access to credit. Also, consumers with a credit score of 740 or less are likely to lose access to a credit card account, EPC has found, which means 175-190 million people are likely to lose access to credit cards under a proposed cap.
Waters praised credit unions’ response during the most recent federal government shutdown, and she specifically pointed out SkyOne Federal Credit Union for its support of federal employees and members. She also discussed the industry’s proactive response during the COVID-19 pandemic and efficient disbursement of Paycheck Protection Program (PPP) loans.
The congresswoman also praised the cooperative nature of credit unions, saying it was nice to see such strong representation at the roundtable from those within her district.
“We want to thank representative Waters for taking time to sit down with credit union leaders in her district,” said Stephanie Cuevas, senior vice president of federal advocacy for California’s Credit Unions. “With your voice at the table, we were able to reinforce our shared vision with the congresswoman in serving local members and communities.”
