The new strictures on credit cards landed yesterday. The Fed’s new overdraft opt-in rules are already causing ulcers among big banks and credit unions alike. And the debate continues over a proposed new Consumer Financial Protection Agency. (passed in the House, pending in the Senate). What’s the good news again?
For credit unions, there’s a real silver lining, argues Georgetown Law Prof. Adam Levitin, whose Filene credits include a guide to the C.A.R.D. Act and a soon-to-be-released report on the changes to overdraft. His take, presented to at the Filene Research Institute’s member breakfast at the GAC this morning, is that:- Credit unions rely far less than their competitors on credit card revenue and overdraft (though, here the reliance is more pronounced).
- As mutuals, credit unions have more flexibility to work with decreased margins.
- And the proposed CFPA will hamstring fringe players and banks much more than credit unions.
A full version of Prof. Levitin’s presentation is available to Filene members here.
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