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Hundreds of state banking associations and banks sent a letter to House leadership explaining the importance of repealing the Durbin amendment. Read the full letter here.
Campaign for Liberty has joined an “open letter” to Chairman of the House Financial Services Committee Jeb Hensarling requesting repeal of the “Durbin Amendment.” This amendment, named after its sponsor Illinois Senator Dick Durbin, and part of the Dodd-Frank bill, limits “interchange fees,” which are the fees banks and credit unions charge businesses for processing credit card transactions. Sounds boring? It’s ok you can admit it. I hear you yawing. Or are you asking yourself: “Who cares about a fight between big retailers and big banks?” Well you should care since the costs of these price controls are born by consumers who are faced with fewer services and/or higher fees from their financial institutions. Continue Reading
Over a century ago, politician Simon Cameron famously quipped, “An honest politician is one who, when he is bought, will stay bought.” He could have been referring to congressional efforts to impose price controls on credit card transaction fees. Senator Dick Durbin (D-IL) is the author of the infamous amendment bearing his name to the Dodd-Frank financial reform bill. The stated purpose of the amendment to assist Fortune 500 retailers who complained about the costs of processing debit and credit cards. From the Senate floor, no less, Durbin recalled how the CEO of Walgreens convinced him to offer the amendment. Continue Reading
Retail lobbying groups will descend on Capitol Hill this morning. They’ll have a few things on their agenda, including arguing that Congress should keep the 2010 Durbin Amendment, which set price controls on debit interchange fees and imposed new regulations on the handling of debit transactions. We know what these groups, which primarily represent big-box merchants and franchisor corporations, will argue. They’ll say that the Durbin Amendment preserves a free market and that consumers will suffer without it. As I’ve written in these pages before: Lawmakers shouldn’t believe these “alternative facts.” Here’s what’s really happening. Continue Reading
After the repeal and replacement of Obamacare, the next big task facing Congress will be reform of the equally awful Dodd-Frank Act. House Financial Services Committee chairman Jeb Hensarling announced the vehicle for that task last year – the Financial CHOICE Act. Since it was announced, it has included repeal of the Durbin Amendment to Dodd-Frank, but there is now heavy lobbying to drop that provision. The special interests behind the lobbying are wrong. Repeal of the Durbin Amendment is vital for consumers. Continue Reading
A new Congress has been sworn in and a new president inaugurated. As with any changing of the guard in Washington, D.C., there will be significant policy shifts, many of which are happening very quickly. One clear priority of this new administration is rolling back unnecessary government regulations that do nothing to help consumers and have not worked as intended. As Congress looks for ways to strengthen our nation’s economy and streamline regulation, the No. 1 priority should be to repeal the Durbin Amendment to the Consumer Financial Protection Act of 2010. Continue Reading
The other two words that are most terrifying are Dick Durbin…at least to consumers, small businesses and small financial institutions. The Fix Was Control Passed as part of the Dodd-Frank financial reform legislation in 2010, an amendment inserted into the bill by Illinois Sen. Dick Durbin required the Federal Reserve to set prices on fees charged to retailers for debit card processing—establishing price caps on debit interchange fees. The move was the culmination of a lobbying campaign championed by Fortune 500 companies like WalMart. They claimed that a reduction in these fees would be passed along to consumer in the form of lower prices. That, of course, never happened.. A study from the George Mason University law school determined that retail prices didn’t drop after the law passed. Continue reading
President Trump has made his disdain for the Dodd-Frank Act clear as day. In his first weeks in office, he even signed an executive order that said his administration will roll back the most punitive parts of the law. This week, a coalition of conservative organizations ranging from the R Street Institute to the Taxpayers Protection Alliance dispatched a letter to Rep. Jeb Hensarling (R-Texas), the chairman of the House Financial Services Committee, urging repeal of the Durbin Amendment, a provision of the law that sets price controls on interchange fees for debit card purchases. If Congress wants to help “drain the swamp,” ending this corporate giveaway would be a great place to start. Continue reading
“Consumers are on the verge of getting a great windfall…” Using retailers’ own words, EPC launched a compelling video focusing on the “broken promises” that retail industry lobbyists made when they pushed for the Durbin Amendment. Now, six years later, “Is the consumer the one that just got screwed?” Watch the video to find out.
This week President Donald Trump is set to order a regulatory rollback for the financial industry with his sights set on the Dodd-Frank Act. As the Trump Administration begins taking action to relieve consumers and businesses of the massive Dodd-Frank regulatory burden, the Administration should begin with one of the most onerous and failed Dodd-Frank policies – the Durbin Amendment. Passed as part of the Dodd-Frank Act, the Durbin Amendment allows the government to set price controls on fees for debit card transactions. Prior to enactment of Durbin, these fees were not capped, and issuers of debit cards, such as credit unions and banks, were encouraged by free market competition to offer consumers benefits, such as free checking accounts. Continue Reading