Bowing to competitive pressures, Bank of America yesterday scrapped plans to impose a monthly debit card fee. The proposed charge antagonized customers and provoked vitriol from politicians all too eager to deflect blame for the dumb regulations that prompted the fee in the first place. But as much as one might wish for an end to this whole sordid affair, this isn’t it. Nor will there be a satisfactory resolution until lawmakers reverse the policy blunder. The debit card fees are a direct consequence of the so-called Durbin Amendment, a …
Who said the 111th Congress has never accomplished anything? Today, major parts of the Credit Card Act of 2009 take effect. Enacted last May with great fanfare, the legislation restricts rate increases on existing balances, requires promotional rates to last at least six months, limits over-limit fees, mandates 45 days notice before certain terms of service can be changed, and imposes a host of other requirements intended to help credit card users. So should consumers be celebrating? Maybe not quite yet. As it turns out, the legislation ran smack dab …
In 1979, Robert Schuettinger and Eamonn Butler wrote a book called “Forty Centuries of Wage and Price Controls,” detailing 4,000 years of disastrous attempts by government to control market prices. Tomorrow, the House Judiciary Committee will vote on adding a 41st century to that litany of failure. The target: credit card “interchange fees.” Interchange fees are the fees paid by one bank to another, and passed on to merchants, as the price for processing a credit card purchase. They are set by credit card associations, such as MasterCard and Visa …
