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Debit card fees Americans use debit cards more than credit cards. But their use costs merchants money: For every swipe, merchants pay 1 percent to 2 percent to banks and credit networks. A proposal that passed the Senate would require the Federal Reserve to limit those fees, and it has created a lobbying donnybrook between banks and retailers. Most of the fees go to banking giants. But the face of the lobbying effort has been small community banks and credit unions that say they will be disproportionately hurt if they lose such fees. The proposal excludes banks with assets under $10 billion. Officials at small banks say their institutions still would have to lower their fees to compete with bigger banks or drop their debit card programs.
Consumer protections The final legislation would create a government consumer financial protection entity. This was once considered the most contentious step sought by the administration. The House bill exempted accountants, tax preparers, real estate agents and auto dealers from this oversight. The Senate bill has no such exceptions. Auto dealers have lobbied fiercely to be excluded from the law's reach, arguing that they assemble loans but don't administer them. Obama has fought back, elevating the issue to a test of White House strength. ___ Online: House Financial Services Committee: Senate Banking, Housing and Urban Affairs Committee:
http://banking.senate.gov/ Consumer Federation of America: Public Citizen: http://tinyurl.com/2a5zyn9 Center for Responsive Politics:
http://tinyurl.com/y4uercn
http://www.consumerfed.org/
http://tinyurl.com/23qbmwo
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