Bank of America $5 Fee in Lawmaker Crosshairs
The Street - Two U.S. House lawmakers will introduce legislation Wednesday to repeal financial regulation that caps debit-card swipe fees, arguing that such price controls hurt consumers and ultimately lead to Bank of America charging a monthly fee of $5 for debit-card purchases.
Rep. Jason Chaffetz (R., UT) and Rep. Bill Owens (D., NY) said they seek to repeal the legislation under the Dodd Frank Act, known as the Durbin Amendment, which limits the fees banks can charge retailers for processing debit-card transactions to not more than 24 cents per share. Earlier banks charged an average of 44 cents. The rule went into effect on Oct.1.
Banks have said the rules will hurt their revenues and are looking for ways to offset the lost income, including charging customers for debit-card transactions.