Thursday, June 16, 2016

Bill Would Repeal Durbin Amendment

Rep. Randy Neugebauer (R-Texas) introduced legislation, H.R. 5465, to repeal Section 1075 of the Dodd-Frank Act, better known as the Durbin Amendment.

The Durbin Amendment imposed a cap on debit interchange fees charged by banks and credit unions with $10 billion or more in assets.

In introducing the bill, Rep. Neugebauer stated:

"Sen. Dick Durbin (D-Ill.) and the retail lobby sold Congress on the need for debit swipe fee reform under the guise that consumers would see significant savings if the government controlled the price of these transactions. Instead, several studies, including research from the Federal Reserve Bank of Richmond, have definitely shown that consumers have not received any passed-through savings. Some studies have even shown that these price caps have resulted in reduced free checking accounts and higher minimum balances for consumers. Further, some small businesses and those with a high volume of small-dollar transactions are actually fairing worse with the price caps in place – a strange twist for the retail industry, which was lobbying so hard for the Durbin Amendment’s adoption."

Rep. Neugebauer concluded: "This legislation will restore competition in the marketplace, remove arbitrary government price caps, and ensure consumers have affordable access to basic banking services."

This is legislation that both banks and credit unions can support.

Read the press release.

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