CUNA and NAFCU are working with the Federal Reserve to get it to change the provisions of rules on interest rates and notification of customers that will be used to enforce the credit card law passed by Congress last year.
The associations took issue with the Fed's decision to eliminate interest rate floors. NAFCU President/CEO Fred Becker wrote the Fed that interest rate floors are a vital tool to help credit unions manage interest rate risk and are a "vitally important planning tool for credit card issuers."
NAFCU Compliance Director Anthony Demangone predicted credit unions will amend their agreements to get rid of floors but increase the margin used to calculate the rate.
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