Several banking and credit union associations have jointly urged Congress to reject proposed legislation that would increase federal oversight in the U.S. credit card market. The American Bankers Association, America’s Credit Unions, Bank Policy Institute, Consumer Bankers Association, Electronic Payments Coalition, Independent Community Bankers of America, Mid-Size Bank Coalition of America, and National Bankers Association have expressed their concerns in a letter to the Senate Judiciary Committee.

The letter opposes the Credit Card Competition Act (S. 1838 Durbin-Marshall bill) and any expansion of the Durbin amendment. The groups conveyed their "deep disappointment" with the committee's decision to hold a hearing during Congress's lame-duck session without inviting testimony from community banks or credit unions affected by the proposal.

"The negative repercussions of the Durbin amendment are still being felt nearly 15 years after it was signed into law," stated the associations. They cited a 2022 Government Accountability Office report indicating that if not for the Durbin amendment, "65 percent of noninterest checking accounts offered by covered banks would have been free."

The organizations warned that new regulations on credit card interchange fees could similarly harm consumers. Research estimates suggest that expanding routing requirements through the Durbin-Marshall bill could increase checking account service costs by $1.3 to $2 billion annually.

These mandates would affect all card-issuing financial institutions nationwide, including community banks and credit unions supposedly exempted by supporters of these measures. The associations argue this is not feasible as previous experiences showed significant revenue declines for these institutions due to similar past amendments.

Survey data included in the letter suggests American consumers value their cards and oppose federal intervention in personal finances. The associations emphasized existing competition within various payment methods available today.

The groups cautioned against actions that might disrupt what they described as a "convenient, secure and hassle-free" payment system crucial for consumer protection against fraud and supporting economic activities across various platforms continuously throughout each year.

"The Durbin-Marshall bill, and any other legislation that intervenes in the credit card market, puts all that in jeopardy," concluded their letter.