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The Durbin Fee : Amendment to Dodd-Frank Will Cost Debit Card Users. Hold on to your wallets.
National Review ^ | 10/03/2011 | The Editors

Posted on 10/03/2011 10:04:02 AM PDT by SeekAndFind

Hold on to your wallet: The Durbin Amendment goes into effect Saturday. The once-obscure amendment to the Dodd-Frank financial-reform bill limits “interchange fees,” which banks charge to merchants for providing the service that allows stores to accept debit-card payments. The fees were cut by some 80 percent, which makes it less profitable for banks to offer debit-card services. So the banks have done the natural thing and begun to transfer the fee from merchants to their customers, with Bank of America announcing a new $5-per-month fee for debit-card users.

Naturally, the amendment’s author, Sen. Dick Durbin (D., Ill.) is in a rage, complaining that the banks are “sticking it” to consumers. He ought not be surprised: What is happening is precisely what was predicted by industry experts and by the banks themselves. Running a debit-card network costs money, and banks are not going to do it for free or suffer reduced profits gladly. As is usually the case, what we have here is one special-interest lobby (retailers) using its political clout to prevail over a marketplace rival (the banks) to secure for itself a bigger piece of the action. Mr. Durbin, being a senator and a Democrat, cannot resist the urge to stick his nose into controversies better left to the marketplace. Not coincidentally, one of the nation’s largest retailers, Walgreens, is located in his state, and the firm’s CEO lobbied hard for the new federal price controls on debit-card fees.

The new fees are a textbook example of the unintended consequences of regulation — unintended, yes, but not unforeseeable.

Indeed, they were almost universally foreseen. In the Michigan state legislature — hardly a hotbed of free-market fundamentalism — a resolution calling for abandoning the Durbin amendment was passed unanimously by both houses. Sen. Darwin Booher, who sponsored the Michigan resolution, said at the time: “I sponsored this resolution to send a strong message to Congress: Stop any rules from being adopted that would harm our community banks, credit unions, and the millions of Michigan consumers that use them. As currently proposed, the rules would force credit unions and community banks to absorb the costs of fraud and data security. That would result in less credit available for job providers, increased fees, and the ending of popular services like free checking.”

Free checking accounts were the first casualty, with almost every major bank in the country restricting that popular option to larger accounts and imposing new fees on customers who keep lower balances. Again, Bank of America was the first mover, a position it was impelled to take in no small part by the fact that the new regulation forced it to suffer a $10 billion writedown of future earnings. “I’ve seen more regulation in last 30 months than in last 30 years,” Robert Hammer, a banking expert, told the Associated Press. “The bottom line for banks is shifting enormously, swiftly and deeply, and they’re not going to sit by twiddling their thumbs. They’re going to change.” Unintended, not unforeseeable.

Dodd-Frank is a bad piece of legislation, and the Durbin Amendment may not even be the worst part of it. But when Americans start seeing those $5 monthly fees on their bank statements (and if you get a paper bank statement, expect a fee for that, too), we should thank Senator Durbin, who did it all to save us money.


TOPICS: Editorial; News/Current Events; Politics/Elections
KEYWORDS: banking; congress; debitcardfee; debitcards; democratcorruption; democrats; dickdurbin; dodd; doddfrank; durbin; durbinamendment; durbinfee; elizabethwarren; finreg; frank; liberalfascism; liberals; regulation; warren; warrenfee; warrentax

1 posted on 10/03/2011 10:04:12 AM PDT by SeekAndFind
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To: SeekAndFind

How Dodd and Frank are not in prison is beyond me.


2 posted on 10/03/2011 10:06:55 AM PDT by ColdOne (I miss my poochie... Tasha 2000~3/14/11)
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To: SeekAndFind
So...all those Occupy Wall Street hippie-freaks gonna have to shell out more dough for using their debit cards at the Starbucks.

Sweet....

3 posted on 10/03/2011 10:07:54 AM PDT by moovova (Report my sarcastic, fear-mongering lies to www.AttackWatch.com by clicking HERE.)
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To: SeekAndFind

So they would rather process checks than do it electronically? It would seem that doing the money transfers would be cheaper for them.


4 posted on 10/03/2011 10:08:04 AM PDT by RC2
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To: SeekAndFind

Dodd Frank is just as dangerous to the health of the country as Obamacare. The candidates need to start pointing this out and talk about it’s repeal.


5 posted on 10/03/2011 10:08:04 AM PDT by Lazlo in PA (Now living in a newly minted Red State.)
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To: SeekAndFind

Dick Durbin, Obama and the Dems are not going to sit idly by and allow B of A to beat them up in a PR war with the “Durbin Fee”. You might as well call something the Democrat Wallet Emptying Program. They won’t let this stand.

Some additional regulatory pain is now headed B of A’s way. And you can take that to the bank.


6 posted on 10/03/2011 10:09:19 AM PDT by Buckeye McFrog
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To: SeekAndFind

I am required by Republic Bank to have a checking account with them in order for them to hold my mortgage. That also requires 7 transactions a month through the account.

This checking account requires 2 debit cards. It charges me $1 per card if the card is not used at least once each six months.

If they start charging me $5 a month for the debit cards I don’t want or use, I’m going to be pretty mad.

Now I don’t have a problem with the account requirement. RB has good terms on the mortgage and in return they want some business from me. I will add that RB hasn’t sold the mortgage and the agreement does state that if they were to do so, the checking account requirement is void.


7 posted on 10/03/2011 10:13:06 AM PDT by ChildOfThe60s ( If you can remember the 60s....you weren't really there)
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To: ChildOfThe60s

The $5 monthly charge applies only if you USE the debit card in any one month.....that is my understanding, but please double check this.


8 posted on 10/03/2011 10:22:35 AM PDT by federal__reserve
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To: SeekAndFind

This reminds of the mole in that funny golf movie Caddyshack where the critter is whacked in one hole and just pops up in another hole.


9 posted on 10/03/2011 10:24:18 AM PDT by federal__reserve
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To: SeekAndFind

Since each and every Senator (and staff member for that matter) think they are infinitely smarter than anyine else in America, we see stoooopid stuff like this that produce unintended consequences. They need to stop screwing with the system, which screws us, and allows others to screw us. The only ones not being screwed are the people that continually screw us. Barney Frank likes sticking things up our...... Don’t know Dick Turban’s motivation other than acting stupidly and getting wee-weed up.


10 posted on 10/03/2011 10:25:54 AM PDT by SERKIT ("Blazing Saddles" explains it all......)
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To: federal__reserve
The $5 monthly charge applies only if you USE the debit card in any one month.....that is my understanding, but please double check this.

I just called Republic and was told that at present they have no plans for a debit card fee. I was also told that I could cancel both of the cards if I wished, so I misunderstood that when I got the account. I think I will cancel one of the cards and hold on to one for the time being, in case my needs change.

11 posted on 10/03/2011 10:26:54 AM PDT by ChildOfThe60s ( If you can remember the 60s....you weren't really there)
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To: ColdOne
They have that "D" at the end of their names. Speaking of jail, why isn't Charles Rangel in jail? Or Jamie Gorelick for Gods sake? I was reading the bio of that creature last week slapping my head over and over! Rips off $25 million? Falsifies records? Causes a financial crisis? Destroys lives not to mention deaths with her freakin' "Gorelick wall"? And they had the GALL to put this bitch on the 911 Commission?

Then I read the bio of former New york city Police Commisioner Benard Kerik, a Republican. One of the highest decorated cops in NYPD history. Doing four years in jail for tax evasion on ONE tax return and because contracters doing work on his place were mob connected. Whoa, the mob involved in construction? That must be a first! I better do background checks on that roofer I hired. Oh yes; And *gasp* he employed a maid who was an illegal!

12 posted on 10/03/2011 10:30:49 AM PDT by GrandJediMasterYoda (Mark Halperin - Learned the hard way what happens when you speak the truth on PMSNBC.)
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To: SeekAndFind
Charlie Gasparino said on FOX NEWS this morning that Wall Street is planning tens of thousands of layoffs as a result of Dodd-Frank.
13 posted on 10/03/2011 10:31:47 AM PDT by Brad from Tennessee (A politician can't give you anything he hasn't first stolen from you.)
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To: SeekAndFind; ding_dong_daddy_from_dumas; stephenjohnbanker; DoughtyOne; calcowgirl; Gilbo_3; ...
RE "Hold on to your wallet: The Durbin Amendment goes into effect Saturday. The once-obscure amendment to the Dodd-Frank financial-reform bill limits “interchange fees,” which banks charge to merchants for providing the service that allows stores to accept debit-card payments. The fees were cut by some 80 percent, which makes it less profitable for banks to offer debit-card services. So the banks have done the natural thing and begun to transfer the fee from merchants to their customers, with Bank of America announcing a new $5-per-month fee for debit-card users. Naturally, the amendment’s author, Sen. Dick Durbin (D., Ill.) is in a rage, complaining that the banks are “sticking it” to consumers. He ought not be surprised: What is happening is precisely what was predicted by industry experts and by the banks themselves. Running a debit-card network costs money, and banks are not going to do it for free or suffer reduced profits gladly."

Standard liberal procedure, blame others for THEIR own failed policies.

Photobucket

14 posted on 10/03/2011 10:33:57 AM PDT by sickoflibs (Over-taxed means 'paying too much in taxes', not zero taxes)
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To: GrandJediMasterYoda

RE: Speaking of jail, why isn’t Charles Rangel in jail?

He was officially CENSURED by the House... Isn’t that punishment enough ? /sarc


15 posted on 10/03/2011 10:38:02 AM PDT by SeekAndFind (u)
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To: Lazlo in PA

Frankendodd the banking monster, twin brother of Frankenstein.


16 posted on 10/03/2011 10:39:19 AM PDT by W. W. SMITH (Islam is an instrument of enslavement)
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To: SeekAndFind

I used to beg my parents “Please don’t censure me! I can take anything but censure!”


17 posted on 10/03/2011 10:40:05 AM PDT by Protect the Bill of Rights
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18 posted on 10/03/2011 10:42:53 AM PDT by TheOldLady (FReepmail me to get ON or OFF the ZOT LIGHTNING ping list)
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To: SeekAndFind

I would think that Bank Debit Cards are used by a lot of folks who have low salaries/wages. These are the folks who probably have a hard time getting a regular Credit Card.

So along comes DEMOCRAT DURBIN who sticks it to the poor folks by forcing the banks to reduce their charges against the retailer and put a fee against the card holder instead.

Way to go Democrats. Can we help you find other ways to stick it to your base?


19 posted on 10/03/2011 11:18:00 AM PDT by Presbyterian Reporter
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To: SeekAndFind

I would think that Bank Debit Cards are used by a lot of folks who have low salaries/wages. These are the folks who probably have a hard time getting a regular Credit Card.

So along comes DEMOCRAT DURBIN who sticks it to the poor folks by forcing the banks to reduce their charges against the retailer and put a fee against the card holder instead.

Way to go Democrats. Can we help you find other ways to stick it to your base?


20 posted on 10/03/2011 11:19:58 AM PDT by Presbyterian Reporter
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To: ColdOne; raybbr; CutePuppy; ken5050
How Dodd and Frank are not in prison is beyond me.

Prison? Dodd is riding high---in Hollwood. Dodd was bought and paid for by financial interests. And when Dodd dropped out of politics to go to Hollywood, Frank sucked up to the same interests.

Dodd runs Hollywood's lobbying syndicate---the Motion Picture Association of America-----at a cool $1.2 million a year PLUS, despite pledging "no lobbying, no lobbying" after his forced retirement from the Senate. Pathetic and instructive to those seeking to understand the liberal mind.

Reams of legislation Dodd has written or advocated affecting the housing, lending, insurance and securities industries have drained hundreds of billions out of the economy, ballooned the federal debt, cost tens of thousands of people their jobs and driven hundreds of thousands of homeowners into foreclosure, bankruptcy or both.

For his efforts, Sen. Dodd was rewarded in the 2008 election cycle., alone, with $7.65 million in campaign contributions (he took in $11.7 million in all) from the securities, insurance, real-estate and commercial-banking industries. With $165,400, Sen. Dodd also topped the list of members of Congress who took campaign cash from Fannie Mae and Freddie Mac since 1989. Sen. Barack Obama, the self-styled agent of change, is second at $126,000....

SEN DODD'S CAMPAIGN CONTRIBUTORS
Citigroup, $310,294;
SAC Capital Partners, $282,000;
United Technologies, $263,400;
AIG, $224,678;
Bear Stearns, $205,600;
St. Paul Travelers, $205,400;
Royal Bank of Scotland, $203,750;
Goldman Sachs, $175,600;
Morgan Stanley, $155,000;
Credit Suisse, $154,550;
Merrill Lynch, $134,950;
The Hartford, $94,350;
Bank of America, $91,300;
JPMorgan Chase, $129,150;
USB, $101,900;
Hartford Finance Services, $101,500
Lehman Brothers, $128,400;
KPMG, $113,100;
General Electric, $108,250;
Deloitte Touche, $108,000

When the Dodd-Frank financial overhaul act was passed, its supporters promised greater scrutiny of big money managers, such as hedge funds and private-equity firms, that have long been allowed to fly under regulators' radar........... In a strange twist, the new rules aimed at cleaning up Wall Street may make it easier for some investment managers to commit fraud.

Dodd was bought and paid for by financial interests. And when Dodd was forced out of politics to become Hollywood's point man, Barney Frank sucked up to the same interests.

21 posted on 10/03/2011 11:39:06 AM PDT by Liz (The rule of law must prevail. We can’t govern ourselves by our personal point of view.)
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To: SeekAndFind

Is that outrageous or what? AND if that wasn’t enough, he was re-elected! WTF?


22 posted on 10/03/2011 11:52:03 AM PDT by GrandJediMasterYoda (Mark Halperin - Learned the hard way what happens when you speak the truth on PMSNBC.)
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To: Liz
My Cousin told me this in June and Banks are supposed to take the bad PR and lie to their customers and not say Dodd-Frank made the charge on Debit Cards.
23 posted on 10/03/2011 11:52:38 AM PDT by scooby321
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To: federal__reserve

Not true. We have our PAC checking account and I have a personal checking and savings account at a credit union and they are charging us $5 a month even though there are no debit cards attached to any of the accounts. CEO said they could either absorb the charge for everyone or charge for it so they are charging. They do pay interest, albeit minimal, on all account balances. I have a business checking account at a regular bank and they don’t charge the fee even though I use debit card for all transactions I can. But I also have checks being direct deposited every month and maintain more than a minimum balance.


24 posted on 10/03/2011 11:55:51 AM PDT by Grams A (The Sun will rise in the East in the morning and God is still on his throne.)
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To: GrandJediMasterYoda

RE: Is that outrageous or what? AND if that wasn’t enough, he was re-elected! WTF?

One of the charges against Charles Rangel was his failure to report income from his rental of a beachside villa he owns in Punta Cana in the Dominican Republic.

I would have supported him at least in that one area had he argued for a change of tax law that states -— INCOME NOT EARNED IN THE USA should NOT BE TAXABLE IN THE USA.

I know of a software engineer from Germany (and still a German citizen) who works at Microsoft but doesn’t pay German income taxes; only US taxes. But when if you worked in Germany for 9 months or more, you have to pay both US and German taxes.

The US and Eritrea are the only two nations that tax based upon citizenship, not locale. The US makes a claim to taxes on any money you earn anywhere in the world, if you’re a citizen or permanent resident. Highly immoral - but a claim nevertheless.


25 posted on 10/03/2011 12:06:46 PM PDT by SeekAndFind (u)
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To: sickoflibs

And let us not forget when Durbin called our troops Nazis.


26 posted on 10/03/2011 4:59:45 PM PDT by Marine_Uncle (Honor must be earned....Duncan Hunter Sr. for POTUS.)
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks sickoflibs.


27 posted on 10/03/2011 8:41:02 PM PDT by SunkenCiv (It's never a bad time to FReep this link -- https://secure.freerepublic.com/donate/)
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To: Liz; ken5050; Presbyterian Reporter
It is Durbin's amendment to FinReg / Dodd-Frank, but behind the scene, the real author of this particular plank was a Marxist Elizabeth Warren, a putative Democratic candidate for the U.S. Senate seat from New Jersey.

She worked hard for the creation of Consumer Financial Protection Bureau, cleverly embedding it in the Fed structure practically self-financing and with nearly no accountability to the Congress.

She is a heroine of Michael Moore's propaganda film Capitalism: A Love Story. She made her name as a "financial expert" by attacking banks and credit and debit card services (interest rates, fees and other card terms), usually on PBS and similar programs and "documentaries".

Unsafe at Any Rate - Elizabeth Warren, Democracy | A Journal of Ideas, Issue #5, Summer 2007

If it's good enough for microwaves, it's good enough for mortgages. Why we need a Financial Product Safety Commission. .....

The Tobin Project is an alliance of the nation's leading academics united by a belief in the power of ideas and a shared commitment to using ideas to improve the lives of their fellow citizens.

Modeled after earlier efforts to link academics and lawmakers, the Tobin Project seeks to influence public debate by reaching both outward to connect with the policy community and inward to shape debate within the academic community.

28 posted on 10/03/2011 10:43:24 PM PDT by CutePuppy (If you don't ask the right questions you may not get the right answers)
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To: SeekAndFind

You can rest assured that Franks, Dodd and Durbin will receive some type of monetary profit from this amendment.


29 posted on 11/20/2011 6:27:29 AM PST by MidnightHour
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