DCUC urges congress to reject Credit Card Competition Act in disaster relief legislation
WASHINGTON, D.C. (October 18, 2024) — Today, the Defense Credit Union Council, DCUC, voiced its opposition to the inclusion of the Credit Card Competition Act (CCCA) in any disaster supplemental appropriations legislation that might be considered by Congress.
In letters addressed to House Speaker Mike Johnson (R-LA 4th District) and Minority Leader Hakeem Jeffries (D-NY 8th District), and Senate Majority Leader Chuck Schumer (D-NY) and Minority Leader Mitch McConnell (R-KY), DCUC’s Chief Advocacy Officer, Jason Stverak, warned of the severe consequences this bill could have on credit unions serving military members, veterans, and their families.
“While the intent of the CCCA may be to encourage competition, its unintended consequences threaten to significantly disrupt the financial services credit unions provide to military families, weaken consumer protections, and ultimately harm the financial well-being of those who serve our country,” Stverak stated.
Stverak emphasized that defense credit unions, which operate under a not-for-profit model, are uniquely positioned to serve military and veteran communities by prioritizing member interests over profits. However, the CCCA would disproportionately impact these credit unions by imposing costly and operationally complex requirements, such as mandating that credit card transactions be routed through multiple, often less secure networks.
Service members and their families face unique financial challenges due to frequent relocations, deployments, and the need to maintain financial readiness. The proposed legislation would hinder defense credit unions’ ability to offer vital products, such as low-rate credit cards and debt relief programs, which are specifically designed to address these challenges.
Furthermore, Stverak warned that the CCCA would undermine the robust consumer protections defense credit unions have long provided. By disrupting current transaction security protocols, the legislation could lead to increased fraud, diminished security, and a weakening of protections that service members and veterans rely on.
DCUC expressed concern over discussions to attach the CCCA to upcoming disaster supplemental funding legislation.
“It is unwise to make such a significant change to the American financial system without the bill following the regular legislative process,” Stverak argued. “Combining such a policy with crucial disaster relief funding could have devastating consequences for military families at a time when they need greater financial stability and support.”
In closing, DCUC called on Congress to reject the inclusion of the CCCA in any disaster relief legislation and to prioritize policies that strengthen, rather than weaken, the financial resilience of the nation’s service members and their families.
“Our members—those who wear the uniform and their families—deserve better,” Stverak concluded. “We urge you to stand with defense credit unions and the military families we serve by opposing this harmful legislation.”
For more information on DCUC’s advocacy, please visit dcuc.org/advocacy and contact Jason Stverak, DCUC Chief Advocacy Officer at jstverak@dcuc.org.
About Defense Credit Union Council (DCUC)
The Defense Credit Union Council is the trusted resource for credit unions on all military and veteran matters. By maintaining a close and constant liaison with the Pentagon, Capitol Hill, and NCUA, the Council champions the interests of credit unions serving our military and veteran communities by coordinating policy, procedures, and legislation impacting morale and welfare, financial readiness, and the delivery of quality financial products and services. Organized in 1963, the Council’s membership is comprised of more than 180 credit unions with over 37 million members. If you would like more information about this topic, please contact DCUC at hlaverty@dcuc.org.
