A group of organizations recently forwarded correspondence to lawmakers to express opposition to the Credit Card Competition Act of 2022 (H. 8874).
The American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Credit Union National Association, Electronic Payments Coalition, Independent Community Bankers of America, National Association of Federally-Insured Credit Unions, and the National Bankers Association sent the letter to House Speaker Nancy Pelosi (D-CA) and Minority Leader Kevin McCarthy (R-CA).
The groups maintain the legislation introduced by Reps. Lance Gooden (R-TX) and Peter Welch (D-VT) would reduce access to credit, increase security risks associated with credit card use and limit credit card rewards programs.
“Far from increasing competition in the credit card marketplace, this legislation will hurt consumers and benefit big box retailers by reducing the number of credit card issuers competing for consumers’ business,” the organizations wrote.
The groups also maintain the bill would eliminate a consumer’s choice of preferred card network, wipe out the competitive differences among
card products, limit popular credit card rewards programs, and place the nation’s private-sector payments system under the micromanagement of the Federal Reserve Board.
“Quite simply, credit cards make life work,” the organizations concluded. “Consumers have come to rely on their credit card of choice to pay for gas, groceries, and unexpected emergencies. This is especially true as consumers leverage their credit card rewards to deal with rising costs. It’s disappointing that the Gooden-Welch bill prioritizes big box retailers’ profits over consumers at a time when consumers can least afford it.”