Rep. Randy Neugebauer (R-Texas), chair of the House Financial Services subcommittee on financial institutions and consumer credit, introduced a bill Tuesday that would repeal the Dodd-Frank Act’s Durbin amendment. CUNA President/CEO Jim Nussle praised the bill, and issued the following statement:
“We thank Rep. Randy Neugebauer (R-Texas) for his leadership in introducing an important reform to the Dodd-Frank Act today. The Neugebauer bill would reverse the Durbin amendment, which sets price controls on debit card transactions and imposes routing requirements, which have resulted in an $8 billion annual handout to retailers.
“In fighting for debit card restrictions as part of the 2010 Wall Street reform package, retailers claimed they would pass savings onto consumers in the form of better prices on goods and services. However, five years after the Federal Reserve issued a rule to implement the amendment, retailers have kept most of this revenue--an estimated $36 billion--for themselves, according the Federal Reserve Bank of Richmond.
“The Durbin amendment has been bad for consumers and has been a burden on credit unions. Unlike merchants, credit unions and other financial institutions do not simply pocket interchange revenues. We use them to support a global payments network and invest in developing the latest security technologies, such as real-time predictive analytics, EMV, tokenization, biometrics and end-to-end encryption, to help keep consumers’ data safe.
“We urge Congress to pass this important measure,” Nussle said.