Consequences of the Durbin Amendment

It has been more than six years since the Senate’s passage of the Durbin amendment as an attachment to the Dodd-Frank act of 2010. Since that time, consumers have been adversely impacted by the legislation. In the past three years, seven separate studies have illustrated these unintended consequences.

Consumers Pay More For Banking. Merchants Not Passing Along Savings.

In an effort to make up for lost revenue due to the Durbin amendment, banks have had to eliminate free checking accounts and debit card reward programs for customers.  According to several surveys, only 39 percent of banks offer a checking account with no minimum balance requirement and no monthly checking fee, down from 45 percent in 2011. Additionally, consumers have yet to see any savings resulting from the $8 billion a year windfall seen by merchants as a result of the Durbin amendment. All of the below studies below illustrate the consequences consumers have felt as a result of the Durbin amendment.


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