According to Forbes, an amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act, passed three years ago this month, has had a significantly negative impact on American consumers. The amendment was proposed and named after Dick Durbin (D-IL) and passed 64-33 with 17 Republican supporters. It called for the control of prices on the interchange fees for debit cards and targeted banks with assets over $10 billion, but the amendment has had a proportionally greater impact on credit unions and small banks, which economies are built on higher exchange fees to fund customer service. The Durbin Amendment is estimated to have cost banks over $8 billion during the first year alone.
Forbes states that the amendment has been something of a disaster for consumers, who have seen their free checking accounts all but disappear, more banking fees crop up, and a failure “to see savings at the check-out line – the original intent of the amendment in the first place.” The Durbin Amendment has had a positive impact on retailers, who have seen their profits increase while consumers are left out in the cold.
Barney Frank himself, famous for his stance of government regulation has said, “I believe that a free market approach in this area will be better for the economy and all concerned parties than the current system.”