CUNA continues to push for a repeal of the Durbin Amendment, issuing an action alert Thursday and writing to the House Financial Services Committee outlining the reasons the repeal is needed. The Durbin Amendment requires the Federal Reserve to limit fees charged to retailers for debit card processing.
CUNA’s action alert urges credit union stakeholders to write their representative in favor of repealing Durbin, as it has led to an estimated $1.1 billion drop in funds available to provide needed loans, services and better rates to consumers.
The alert can be found on CUNA’s Grassroots Action Center.
Repealing the Durbin Amendment is a provision CUNA supports in Rep. Jeb Hensarling’s (R-Texas) Financial CHOICE Act. CUNA joined with other trade association as a member of the Electronic Payment Coalition to write a letter for the record for this week’s CHOICE Act hearing calling for Durbin repeal.
The letter also notes that there is effectively no exemption from the Durbin Amendment.
“The Durbin price controls and routing provision clearly have harmed community financial institutions with less than $10 billion in assets by eroding their interchange revenues. As reported by the Federal Reserve, compared to January 2011--just before the Durbin Amendment took effect--the average interchange fee for ‘exempt’ issuers has fallen 19.7% for PIN transactions and 5% for signature transactions, therefore reducing total interchange revenue,” the letter reads.
Repealing the Durbin Amendment is also a top priority in CUNA’s bipartisan, pro-consumer Campaign for Common-Sense Regulation.