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CUNA: Two-year delay needed for interchange study

The U.S. Congress intended that small debit card issuers be protected from the rate regulations in the interchange law yet the Federal Reserve Board's implementation proposal fails to accomplish that goal, the Credit Union National Association (CUNA) said in its comment letter to the Fed filed yesterday. CUNA was commenting on the board's proposal to implement the interchange provisions of the Dodd-Frank Act.

CUNA also said that given the number and nature of the issues unresolved by the proposal, the Fed should work with Congress to delay interchange regulation implementation by up to 24 months to allow more time for discussion and consideration of how the interchange regulations would impact credit unions.

CUNA noted that interchange fee regulation is the most significant regulatory issue facing credit unions that offer debit cards, and said that credit unions are concerned about the impact that the interchange proposal could have on their members, debit card programs, and day-to-day operations.

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