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NAFCU-supported legislation to repeal the Durbin amendment on debit interchange was introduced today by Rep. Randy Neugebauer, R-Texas, chairman of the House Financial Services Subcommittee on Financial Institutions and Consumer Credit.

Today's legislation, H.R. 5465, signals growing support on the House Financial Services Committee for repealing the Durbin amendment, which is also being targeted for repeal by full committee Chairman Jeb Hensarling, R-Texas.

Last week, NAFCU President and CEO Dan Berger wrote House leaders to hit back at merchants' claims that savings from the Durbin amendment's debit interchange price controls benefit consumers. He said the cap has instead created a $36 billion windfall for merchants.

The Durbin amendment, passed as part of the Dodd-Frank Act, required the Federal Reserve to cap debit interchange fees charged by financial institutions with $10 billion or more in assets. The real effect has been to reduce interchange fees across the board, but the price caps, which reduced costs for retailers, have not resulted in the promised savings for consumers at the check-out line.

Berger welcomed Neugebauer's legislation. "NAFCU and our members thank Chairman Neugebauer for his leadership on this issue and for his commitment to reversing this devastating amendment that has enriched merchants, driven up costs for financial institutions and generated no net benefit to consumers," Berger said.

He continued, "We look forward to working with the chairman, his subcommittee and the full House Financial Services Committee to eliminate this ill-advised provision."