To Help a Friend

I'm too tired to do an actual blog, but I think this is important enough to copy and paste on here to ask for your help.  If you know me, you know that I am strictly a Credit Union gal ~ no bank fees for me!  Here is an email I received from the CU.  I clicked on the link and it really is fast and pain-free!

Dear Valued Member,


One of the greatest strengths of First Alliance Credit Union is that fact that we're owned by our members - by all of you who have a vested interest in our future. From time to time, credit unions call upon their members to voice opinions about a particular legislative issue that is of great importance. Now is such a time.

Background: Last week the U.S. Senate approved the Financial Regulatory Reform Bill. While the overall bill takes a balanced approach, there is one provision that is of great concern to credit union members like you. In the debate process, the bill was amended to direct the Federal Reserve Board to limit fees that merchants pay when customers pay with debit cards. This "interchange amendment," which did not receive a thorough review, does not belong in this bill and will have unintended consequences for credit union members. The House also passed a financial reform bill in December 2009 and the final step is for the two chambers to reconcile the different bills by a conference committee.

Credit Union Member Concerns: The Senate-passed interchange provision reduces merchants' financial responsibility for the benefits received from the card payment system. Merchants receive tremendous benefits when they choose to accept debit and credit cards as a form of payment. They are paid immediately, and they do not have to deal with cash or wait for a check to clear. Like electricity or rent, the interchange fee that the merchant pays is a cost of doing business. Government rate controls on interchange reduce the merchants' responsibility to pay for the benefits received from the card payment system and will drive up costs for this credit union and our members.

First Alliance Credit Union incurs significant expenses in operating our card payment system, about $24,000 per month. For example, we are responsible for administration, customer call centers, reissuing cards in cases of merchant fraud and we pay to support the electronic network over which your charges are authorized. Interchange supports these costs. If interchange fees were reduced, this credit union and other small financial institutions would be forced to raise rates and fees for card services, or even curtail debit and credit card services for members. Furthermore, there is no evidence to suggest that merchants would pass along any savings resulting from lower interchange to consumers.

The interchange provision of the Senate bill offers no real "exemption" or "carve-out" for credit unions; if it were included, merchants and big banks would set rates that would make it impossible for this credit union to compete. In the end, merchants could refuse to accept the credit union debit card you rely on for everyday use!

ACTION NEEDED: Please send a message to your federal legislators today urging them to oppose inclusion of the Senate-passed interchange provision in the financial reform bill. Even if you do not have a First Alliance Credit Union debit card, it is important for all members to weigh in on this. A prewritten letter is available to you at http://www.greatcreditunions.org/, where you can send a quick e-mail or print and fax a letter. (This message will be directed to the appropriate legislators based on your address.)

Make sure your voice is counted! Thank you for your participation in this important Action Alert.

THANK YOU!  (that's from me, not part of the letter :D)