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Op-Ed: Fed finds (again!) that Durbin Amendment hurts consumers
The Federal Reserve Board of Governors recently released a report called “The Impact of Price Controls in Two-sided Markets: Evidence from US Debit Card Interchange Fee Regulation.” That dense title is one that few consumers—or even policy wonks—will put on their August reading lists. They should. It proves, yet again, that lawmakers like House Financial Services Committee Chairman Jeb Hensarling (R-Texas), Reps. Blaine Luetkemeyer (R-Mo.), and Ted Budd (R-N.C.) and others were right: the Durbin amendment, shoved into the 2010 Dodd-Frank bill at the last minute by politicians doing the bidding of merchants like Walmart, is the reason that American consumers are paying more to bank. Continue Reading
EPC Cheers Hensarling, Luetkemeyer and Budd for Support of Durbin Amendment Repeal
WASHINGTON—(June 8, 2017)—The Electronic Payments Coalition (EPC) applauds House Financial Services Committee (HFSC) Chairman Jeb Hensarling and Reps. Blaine Luetkemeyer (R-MO) and Ted Budd (R-NC) for speaking out today on the House floor in defense of the consumers, small businesses, credit unions, and community banks harmed by the Durbin amendment. Although repeal of the Durbin amendment was removed from the CHOICE Act, these leaders stressed the importance of ending this failed policy. “As Chairman Hensarling, Reps. Luetkemeyer and Budd stated, price controls have no place in government policy, as they go against free market principles and always end up hurting consumers,” said Molly Wilkinson, executive director of EPC. “For six years too long, the Durbin price controls have allowed big box retailers to pocket $42 billion at the expense of consumers, small businesses, community banks, and credit unions. We appreciate their leadership in the fight to end this merchant markup … Continue reading
Heritage’s Norbert Michel: Congress Should Repeal the Durbin Amendment Because It Is a Price Control
Business owners expect conservative members of Congress to protect them from the federal government. They particularly rely on conservatives for protection against government price controls. No self-respecting business owner wants the federal government telling him what price he can charge. Business owners – not federal bureaucrats – best understand what prices they need to charge to earn a living and to make their investments worthwhile. Continue Reading
CEI Criticizes House for Capitulation on Durbin Amendment Price Controls
CEI financial policy expert Iain Murray criticized the House for stripping out repeal of the Durbin amendment yesterday from the Financial CHOICE Act. The House Republicans’ capitulation on Durbin repeal is a slap in the face for lower-income Americans. All the evidence suggests the cap on debit card interchange fees resulted in a windfall for retailers who failed to pass on savings to consumers. In fact, many of those consumers were hit by higher bank fees as banks sought to replace the lost income stream from processing debit card transactions. The result has been a net loss of around $25 billion a year for American consumers, most of it born by low-income households. The House had a chance to right this wrong, and they blew it. Continue Reading
NTU Disappointed Durbin Amendment Repeal Pulled From CHOICE
NTU’s Executive Vice President, Brandon Arnold, responded to the repeal of the Durbin amendment: National Taxpayers Union is extremely disappointed by the decision to remove language from the Financial CHOICE Act that would have repealed price controls on debit card swipe fees. While its supporters claim that the Durbin Amendment is a pro-consumer measure, it has instead been little more than a government-imposed windfall for the retail industry. Continue Reading
EPC Continues to Fight for Repeal of Price Controls
The Electronic Payments Coalition (EPC) promised to keep fighting for repeal of the Durbin amendment today and will continue to work with Congress to stop this failed policy. “The House Financial Services Committee voted twice in back-to-back congresses to repeal the Durbin Amendment because members know this is a crony handout that has generated unearned billions for the Big Box retailers and heartburn for their customers,” said Molly Wilkinson, executive director of the EPC. “The Durbin price controls hurt consumers, community banks and credit unions and even small merchants. This is a bad policy, and we, the Electronic Payments Coalition, are committed to repealing it.” Since the policy took effect in 2011, the special-interest Durbin amendment has allowed merchants to collect more than $42 billion they promised to pass along to their customers. In that time, merchants have raised prices while banks and credit unions have lost revenue used to … Continue reading
The Time to Repeal Durbin is Now: New Survey Underscores Policy’s Failures
New Morning Consult survey data released today confirms the need to end the Durbin amendment, with seven in ten voters unaware of having received a discount at the register since the policy went into effect. Across party lines, voters agree that if merchants aren’t passing along savings from the law, it should be repealed. To date, big box stores have pocketed $42 billion at their customers’ expense. The new polling data found nearly 70 percent of voters say these big box retailers like Target and Walmart are looking out for their own bottom lines, not main street interests. “Time and time again, evidence shows the Durbin amendment has been a complete failure and the latest Morning Consult polling is no exception,” said Molly Wilkinson, executive director of the Electronic Payments Coalition (EPC). “For six years, big box retailers have broken their promises to lower costs, and consumers, small businesses, community … Continue reading
Democracy Institute: Dick Durbin’s ‘Reverse Robin Hood’ Economics
Robin Hood took from the rich to give to the poor. A pivotal piece of legislation bearing the imprint of Democrat Richard Durbin suggests the Illinois senator, by contrast, is a fan of “reverse Robin Hood economics” — that is, taking from less fortunate consumers to boost the profit margins of the nation’s largest retail chains. Self-styled “progressives,” such as Durbin, always stress their compassion for the Average Joe, along with their antipathy toward private companies, who allegedly pay their employees as little as possible while charging their customers the highest prices possible. Most of these progressives, however, actually support terribly regressive economic policies, from high minimum wages to closed union shops to protectionist trade measures. Continue Reading
NAFCU: Economic Monitor finds support for CHOICE Act, Durbin repeal
NAFCU’s latest Economic & CU Monitor survey results, now available to member credit unions, show support among respondents for Congress’ move to implement the regulatory relief reforms found in the Financial CHOICE Act (H.R. 10), particularly the proposed repeal of the Durbin interchange amendment. H.R. 10 recently passed the House Financial Services Committee and awaits action by the House. Reports indicate that a vote on the bill could come as early as next month. Continue Reading
Rep. Budd: A Vote To Keep Durbin Amendment Violates Core Free-Market Principles
Representative Ted Budd (R-NC) spoke on the House floor on the importance of preserving the Durbin Amendment repeal in the Financial Choice Act. Two weeks ago, the Financial Choice Act passed the House Financial Services Committee with a full repeal of the Durbin Amendment included. Pro-price control groups are fighting to strip the provision through a procedural technique in the House Rules Committee, a closed-door process that, if successful, will not allow Congress to sidestep a public debate on the policy. Read Rep Budd’s full remarks below. Watch his speech here. Continue Reading