The LSCU is working nonstop in our advocacy efforts to strengthen and preserve the independent credit union movement. Alvin J. Cowans, board chairman of the LSCU and CEO of McCoy Federal CU, recently wrote an article that was published in the Orlando Sentinel that summarized the crushing burden that the Durbin Amendment has brought upon credit unions and consumers.
AC includes key problems with the amendment as follows:
Orlando is nearly 850 miles from Washington, but policies created in our nation’s capital have a far-reaching impact across our state. One example is a 2011 measure called the Durbin Amendment, which has allowed retailers to pocket an additional $36 billion at the expense of consumers and small businesses — and the local financial institutions, like credit unions, supporting them.
Though unrelated to the financial crisis, the Durbin Amendment was included as a last-minute add-on to the Dodd-Frank Wall Street Reform Act. The amendment placed price controls on debit interchange fees, which merchants pay to accept debit transactions, and also changed network and routing provisions. It passed Congress with little discussion or analysis of its impact on customers, financial institutions and the economy …
Meanwhile, members of the League of Southeastern Credit Unions are among those struggling under the weight of the Durbin Amendment’s over-regulation. The amendment is threatening our ability to provide our top-priority, valuable and necessary services to our members.
Read the full article at Orlando Sentinel.