WASHINGTON, D.C. – Members of the Electronic Payments Coalition (EPC)—the American Bankers Association (ABA), Consumer Bankers Association (CBA), Credit Union National Association (CUNA), Financial Services Roundtable (FSR), Independent Community Bankers of America (ICBA), National Association of Federal Credit Unions (NAFCU)—today sent a joint letter to House Financial Services Chairman Hensarling (R-TX) and Representative Randy Neugebauer (R-TX) in support of their efforts to repeal the Durbin Amendment.
The letter highlights the negative impact the amendment has had on consumers and financial institutions nearly five years after the legislation went into effect. Rep. Neugebauer’s bill, H.R. 5465, comes one week after Chairman Hensarling included repeal of the Durbin Amendment’s in his June 7th speech unveiling the Financial CHOICE Act.
“The bottom line is this amendment introduced price-fixing to a formerly functional and competitive marketplace and failed to keep the dubious promises made to sell it—ultimately hurting customers,” the groups write.
Despite promises from retail groups that the additional revenue from the price controls would be passed on to consumers in the form of lower prices, studies confirm customers are not seeing savings at the register. Meanwhile, financial institutions, including community banks and credit unions intended to be exempt from this law, are under undue financial stress from the costly and burdensome provisions included in the law.
The letter continues, “It is now clear that the only way to reverse the damaging impact on financial institutions of all sizes and customers is to repeal the Durbin amendment in its entirety.”
View the letter on EPC’s website here.