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It was bound to happen. In fact, many predicted it when the balance of power in the U.S. House of Representatives switched from Democrats to Republicans on election day. It was a second look at the Durbin Interchange Amendment. As written here on January 27, House Financial Services Committee (HFSC) Chairman Spencer Bacchus (R,AL) announced a hearing on debit card fees to be held February 17.
Could this be the beginning of the end for the Durbin Amendment? Not so fast.
Many members of Congress have expressed concern over the impact of proposed Federal Reserve Board rules to implement the Durbin Amendment. Among those expressing concern is ranking Democrat and former chair of HFSC Barney Frank (D, MA).
Concerns seem to focus on the unintended consequences of implementing the legislation/regulation and the effects it will have on consumer choice, consumer fees, and access to debit products and perks that consumers have come to expect.
The timing of the hearing is interesting coming 5 days before final comments are due on the Fed’s Proposed Rules to implement the Durbin Amendment and approximately two months before the rule is to be finalized on April 22.
While enough votes may well exist in the House to overturn Durbin, the Senate is another matter entirely. At this writing it is highly unlikely that Senate Majority Leader Harry Reid (D-NV) would risk the ire of Senator Durbin (D-IL) by scheduling a hearing on this amendment, let alone a vote.
In the meantime, the regulatory process continues and the clock is ticking.
Could this be the beginning of the end for the Durbin Amendment? Not so fast.
Many members of Congress have expressed concern over the impact of proposed Federal Reserve Board rules to implement the Durbin Amendment. Among those expressing concern is ranking Democrat and former chair of HFSC Barney Frank (D, MA).
Concerns seem to focus on the unintended consequences of implementing the legislation/regulation and the effects it will have on consumer choice, consumer fees, and access to debit products and perks that consumers have come to expect.
The timing of the hearing is interesting coming 5 days before final comments are due on the Fed’s Proposed Rules to implement the Durbin Amendment and approximately two months before the rule is to be finalized on April 22.
While enough votes may well exist in the House to overturn Durbin, the Senate is another matter entirely. At this writing it is highly unlikely that Senate Majority Leader Harry Reid (D-NV) would risk the ire of Senator Durbin (D-IL) by scheduling a hearing on this amendment, let alone a vote.
In the meantime, the regulatory process continues and the clock is ticking.
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