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Berger calls for repeal of Durbin Amendment in Real Clear Politics op-ed
In a new Real Clear Politics op-ed, NAFCU President and CEO Dan Berger calls on policymakers to do what's best for consumers and repeal the Durbin Debit Interchange Amendment under the Dodd-Frank Act. The op-ed publishes as the Federal Reserve revisits its interchange policy and congressional chatter around the topic increases.
“Not only has the Durbin Amendment been a disastrous attempt at price fixing guised as a credible policy proposal, but its repeal would benefit consumers – including many low-and-moderate income communities,” wrote Berger.
Berger shared how the policy has failed to help consumers, noting that “the Durbin Amendment’s passage has cost the average low-income bank customer $160 per year. These are funds that could help struggling American families cover needed costs, particularly as an astounding 63 percent of Americans are living paycheck-to-paycheck amid a worldwide pandemic.”
“It is important policy takes a clear-eyed view of the facts,” noted Berger. “While merchant and retailer groups promised that consumers would see billions of dollars in savings at the checkout line, the savings never materialized. Instead, retailers and merchants have padded their own pockets to the tune of $90 billion in interchange revenue.
“Instead of listening to calls to expand it, now is time for policymakers to abandon the Durbin Amendment all together,” concluded Berger.
NAFCU has consistently advocated against efforts that would undermine credit unions' interchange income and limit their ability to offer their 124 million members affordable products and services. Amid the coronavirus pandemic, the association has shared how credit unions have stepped up to support their members facing financial hardships, including skip-a-pays without penalty, waived fees, low- or no-interest loans, loan modifications, no interest accruals, and more.
Learn more about NAFCU's advocacy on interchange fees here, and read Berger’s full op-ed in Real Clear Politics here.