On October 1, 2011, the Durbin amendment was implemented as part of the Dodd-Frank legislation, shifting $8 billion from banks to the retailers. So far there is no evidence that consumers are seeing lower prices as a result; a direct contrast from what they were promised.In addition to the ABA, the letter was signed by the Credit Union National Association (CUNA), the Independent Community Bankers of America (ICBA), and the National Association of Federal Credit Unions (NAFCU).
A new GAO study titled, “Community Banks and Credit Unions: Impact of the Dodd-Frank Act Depends Largely on Future Rulemakings,” addresses these debit card interchange reforms. The study cites several findings specific to the many hardships that the community banks and credit unions, in particular, have endured since the Durbin amendment was implemented almost exactly one-year ago.
But the most glaring example is the utter lack of benefit to consumers. Despite promises by retailers, and despite a realized $8 billion windfall by these retailers over this past year, consumers have yet to see discounts for using their debit cards at the register.
Read the full letter.
View the GAO study.