Debit Durbin

American Spectator ^ | 9-30-11 | John Berlau

[WOBBLY BOB]

As I detailed here in February in "Dick Durbin Is Stealing Your Free Checking," thanks to price controls on debit card transactions from the Durbin Amendment of the 2010 Dodd-Frank "financial reform" law, free checking is going the way of the dodo bird. The Durbin price controls on interchange fees -- the so-called "swipe fees" that retailers pay to bank and credit unions that process debit card transactions, go into effect this Saturday, October 1, and are already showing more dire effects than originally predicted. Not only is free checking disappearing at a rapid pace -- a new Bankrate.com survey detailed in USA Today found that only 45% of non-interest bank checking accounts are free, down from 65% in 2010 and 76% two years ago, and that the average monthly fee for non-interest checking accounts is $4.37, up 75 percent from last year -- but ordinary Americans will soon be hit by new monthly fees for using their debit cards. And new evidence shows that the price controls may be causing thousands of job losses as well.

[WOBBLY BOB]

[Saundra Duffy]

Heard about this on FOX this morning. All BofA folks will be charged $5/month for the privilege of using their ATM. Just think of the cash BofA will be raking in. Gotta change banks!!!

[businessprofessor]

If these fees were the only impact of Dodd-Frank, I would not be happy but I would not be outraged. These fees are just the tip of the Dodd-Frank nightmare. Dodd-Frank is number 2 on the worst pieces of legislation ever enacted. Obamacare is even worse. Unfortunately, the severe chaos from both bills has been delayed until after the 2012 election.

[newheart]

All BofA folks will be charged $5/month for the privilege of using their ATM. Just think of the cash BofA will be raking in.

Looks like they may be getting some serious backlash. Their home page is currently unavailable.

[immadashell]

The Law of Unintended Consequences will be validated by the libs once again.

[onemiddleamerican]

I'm scratching my head over this decision... if I don't want to pay $5/month for the convenience of using my debit card, I will write checks. Doesn't it cost the banks more to have to handle, process, microfilm/scan the checks?

I'm confused as to their reasoning. Just because they can?

[immadashell]

Bawney Fwank has cornered the market of the turbans. He vows to personally do extensive research.

[Recovering_Democrat]

yep, I got my letter 2 weeks ago from my bank. I had to jump through some hoops to keep my checking fee-free.

Ridiculous.

[Recovering_Democrat]

yep, I got my letter 2 weeks ago from my bank. I had to jump through some hoops to keep my checking fee-free.

Ridiculous.

[luvbach1]

I loathe Turban Dick Turbin.

[SES1066]

What is exceedingly aggravating is that most of the New York financial houses were deep into the tank for Obama in 2008 and similarly for Chuckie Shumer and his cronies in the Democrat Senate and House. Do you think that they wanted these new regulations? I would not be sure that they didn't!

REMEMBER, no business actually pays taxes or fees, instead they pass them out to their customers and shareholders. On the other hand, this kind of regulatory strangulation keeps others out of THEIR hen-house. Too big to fail and no competition other than their peers like Citibank, Morgan-Stanley etc. Please pass the green Poupon!