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On Tuesday this week, the Health Coverage, Insurance, and Financial Services Committee held combined hearings on two issues that could have a significant impact on the cost of living for members. First, it was proposed to exempt medical debt from credit reports, which is in line with the recent CFPB rule that is being challenged by both Congress and the courts and has not yet gone into effect. The League testified neither for nor against the combined bills, stating that while many credit unions already choose not to consider medical debt when reviewing credit reports, that is a decision made by each individual institution according to their own risk tolerance.
The second issue regarded allowing merchants to add a surcharge for card transactions. While much of the country now allows surcharges, Maine only permits governmental organizations to pass interchange fees on to the consumer in the form of surcharges. Connecticut and Massachusetts are two of the other states that also maintain a ban, thus the institution of surcharges would push Maine’s prices up among the highest in New England.
Retail and hospitality organizations testified in favor of the bill, while the League was joined by the Maine Bankers Association in opposition. Superintendent Linda Conti of the Consumer Credit Protection Bureau spoke neither for nor against the proposed bills, adding that while her office frequently receives complaints from consumers on this issue, she has no enforcement ability due to the location of the ban within statute. She recommended the Committee move the ban to another title to enable better enforcement.
The Governmental Affairs team covered two work sessions this week, as well.
LD 880, the “anti-ESG” bill the League and Maine Bankers heavily opposed, was voted ought not to pass by a wide margin; one Committee member voted in favor of the bill. This one vote will allow the proponents of the bill to debate the bill on the floor of the House and Senate. The League is happy with the overwhelming vote and will continue to follow the bill closely.
Last week in the Veterans and Legal Affairs Committee, credit unions took a bit of a public beating from members of the medical cannabis growers’ community. Following the public hearing for LD 859, a bill designed to address the challenges around cannabis banking, the League submitted a memo to the Committee addressing the concerns brought up in the public hearing. At the work session, Committee members cited the League’s memo as they unanimously voted to kill the bill and instead author a letter to Maine’s Congressional Delegation and the White House encouraging them to address the cannabis banking issue.