The Oxford Economics Research has published a study examining the projected consumer and issuer impacts of the proposed Credit Card Competition Act.
According to the study, the Credit Card Competition Act (CCCA) could significantly reduce interchange fee revenues for non-exempt issuers, leading to diminished profitability. This financial strain may compel issuers to curtail value-added services and rewards programs, and to implement measures such as increased annual percentage rates (APRs) and annual fees to maintain profitability. These changes could adversely affect consumers who rely on these benefits.
The same Oxford Economics study estimates that the reduction in rewards and benefits expenditure due to the CCCA could lead to a decrease in consumer discretionary spending by approximately $80 billion annually. This decline in spending could have broader economic implications, potentially resulting in a loss of up to $227 billion in economic output over four years. Such a significant contraction in consumer spending underscores concerns about the potential negative impact of the legislation on the overall economy.
Senator Dick Durbin, a key proponent of the CCCA, announced on April 23, 2025, that he will not seek reelection in 2026, concluding a 44-year congressional career. Durbin's departure opens the door to a competitive Democratic primary in Illinois and may influence the legislative trajectory of the CCCA. His retirement could lead to shifts in Senate leadership and affect the future of the proposed legislation, as per Reuters.
Oxford Economics Research is a global advisory firm specializing in economic forecasting and quantitative analysis. With a team of over 300 full-time economists and analysts, the firm provides data-driven insights to support strategic decision-making for businesses, governments, and institutions worldwide. Oxford Economics is headquartered in Oxford, United Kingdom, and operates offices across the globe.