Today, a federal judge ruled that the Federal Reserve disregarded Congressional intent in setting debit card swipe fees at a level favorable to big banks rather than consumers. In 2010, Rep. Peter Welch(D-VT) partnered with Sen. Dick Durbin(D-IL) to include a provision in the Dodd-Frank financial reform legislation that directed the Fed to crack down on excessive debit card swipe fees charged to small businesses by credit card companies. The ruling invalidates the Federal Reserve’s lenient interpretation of that provision that favored big banks. Rep. Welch made the following comment after the opinion was handed down:
‘This is a big win for consumers and small businesses who are being ripped off by credit card companies charging the highest transaction fees in the world. The Fed sided with the big banks, Master Card and Visa in implementing the Durbin-Welch swipe fee reforms. This judicial decision appropriately sends the Fed back to the drawing board.’
In related news, Sen. Durbin and Rep. Welch sent a letter last week to Federal Reserve Board Chairman Ben Bernanke urging the Fed to review consumer-friendly swipe fee regulations the European Commission proposed last week and to include the Commission’s analysis and recommendations in its standards for swipe fees charged in the United States.
Washington, DC. (July 31st, 2013) Welch's office
Welch applauds federal court ruling on debit card swipe fees
Submitted by tim
on