Durbin Responds to American Bankers Association on Interchange... Again
[WASHINGTON, D.C.] – Assistant Senate Majority Leader Dick Durbin (D-IL) has responded to yet another letter from the American Bankers Association reiterating their opposition to any and all reforms of the interchange system. Durbin’s letter to the ABA today seeks to “cut to the chase” regarding the motivations behind the ABA’s criticisms of the interchange reform law that Congress enacted last year.
“You say in your letter that your members are concerned about the Federal Reserve’s draft interchange rulemaking and that Congress should stop and study the Fed’s proposed rule before the rule goes forward,” Durbin wrote. “However, the interchange ‘Position Statement’ currently on the American Bankers Association’s website makes clear that your association opposes any effort by state or federal governments to regulate interchange rates. Given that your association has unambiguously stated its opposition to any government regulation, it is difficult for me to believe that your efforts to have Congress stop and study this rule are anything other than an effort to prevent regulation from ever occurring.”
“While I do not expect your association to ever change its position of outright opposition to interchange reform, I will conclude by sharing with you the same words that I recently wrote to the CEO of one of your largest member institutions: interchange reform is necessary and it is long overdue. Reasonable regulation of the interchange fee system is supported by a broad and diverse array of consumer, business, university, labor and community groups. These voices should not be drowned out by the lobbying might of the financial industry.”
A copy of today’s response is attached.