WASHINGTON – More than 140 national and state retail trade associations—including NACS and many of the state associations representing the industry—signed a letter in support of the debit reforms included in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. The letter was sent to House Financial Services Chairman Jeb Hensarling (R-TX) and Ranking Member Maxine Waters (D-CA) urging them to support these reforms and oppose any efforts that could weaken or repeal them.
The letter reiterates the staunch support of the signers for the legislation and opposition for any weakening or repealing of Dodd-Frank or the Consumer Protection Act. “The debit reforms contained in Dodd-Frank, also referred to as the ‘Durbin Amendment,’ brought the first piece of competition and transparency into a market that was historically void of it. The reforms in the law have benefitted American consumers, merchants, small financial institutions, and the economy as a whole,” stated the letter.
Since the passage of the Durbin Amendment, small banks, which were exempt from reforms, have in fact benefitted from the reforms. Free checking has not been reduced as banks have suggested, but rather has increased.
Retailers have passed savings onto consumers. For these reasons, retail associations are offering to work with the House Financial Services Committee to protect debit reforms. It has been reported that Hensarling is developing legislation to repeal the Dodd-Frank Act, although it’s not clear whether that legislation will propose repealing debit reforms.