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Tuesday, October 4, 2011

ABA’s Keating: Consumers Lose from Durbin Amendment

ABA President Frank Keating pushed back at President Obama’s criticism of the industry’s response to government price fixing for debit card transactions, saying:
It's disappointing and puzzling that the President would attack a private corporation for responding to government price fixing that has fundamentally altered the economics of offering a debit card.
As a direct result of the Durbin Amendment, consumers have started paying for financial services they previously enjoyed free of charge.

Unfortunately, this proves that whenever government tries to control pricing of a product or service, consumers lose.
President Obama criticized Bank of America’s plans for impose a transparent $5 monthly fee for debit card usage, as an effort to recoup revenue lost by Senator Durbin’s debit interchange amendment.
This is exactly why we need this Consumer Finance Protection Bureau that we set up that is ready to go...

This is exactly why we need somebody who's sole job it is to prevent this kind of stuff from happening...

You can stop it because if you say to the banks, 'You don't have some inherent right just to - you know, get a certain amount of profit. If your customers - are being mistreated. That you have to treat them fairly and transparently.
See Obama's remarks.

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