CCUA Advocates for Fairness, Growth, and Consumer Protection on Beacon Hill

Dear Member,

Boston, MA —The Cooperative Credit Union Association (CCUA), representing 129 state and federally chartered credit unions across the Commonwealth, testified today before the Joint Committee on Financial Services in strong support of two key measures — S.821/H.1338, An Act Allowing Fair Compensation of Massachusetts Credit Union Directors, and S.723, An Act Relative to Growth Opportunities for State Financial Institutions — while voicing strong opposition to S.688, An Act Prohibiting Card Interchange Fees on Tax or Gratuity.

“Credit union board members shoulder extraordinary responsibility,” said Jessica Avery, CCUA Director of Advocacy. “They oversee financial safety, approve cybersecurity and risk management plans, and ensure compliance with complex regulations — all while serving entirely as volunteers. This legislation allows, but does not require, credit unions to modestly compensate their directors for their time and expertise, making board service more accessible and inclusive.”

The proposed Fair Compensation Act would modernize outdated statutes and help credit unions attract a broader, more diverse range of leaders — including working parents, young professionals, and small business owners — without mandating compensation. Sixteen other states, including Rhode Island, Maryland, and Minnesota, already provide this flexibility.

The Association also voiced support for S.723, which would enable credit unions and mutual banks to collaborate when it benefits local communities. “This legislation helps preserve local jobs, expand access to capital for small businesses, and keep financial decision-making rooted in Massachusetts.” Avery said.

In contrast, CCUA strongly opposed S.688, a ubiquitous interchange legislation that has appeared in 25 jurisdictions. CCUA warned the Massachusetts legislature that the proposal would impose costly and impractical regulatory burdens. “This proposal risks destabilizing a payment system that works. “It would raise operational costs and ultimately harm consumers — the very people credit unions are built to protect.” Avery added.

Massachusetts credit unions remain committed to advancing fairness, opportunity, and financial inclusion for every member of the Commonwealth.

For more information, please contact Adrian Velazquez, Chief Advocacy Officer, at avelazquez@ccua.org or Jessica Avery, Director of Advocacy, at javery@ccua.org.