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"Despite some improvements, this provision remains a terrible deal for consumers, for lower-income bank customers, for government benefits programs, and for community banks," said Edward Yingling, president and CEO of the American Bankers Association. "The harm is real consumers will see higher costs, basic banking accounts in low-income communities will either be eliminated or involve higher prices, and government programs will cost taxpayers more money, all for the purpose of increasing merchant profits." The debit card deal is included in a broader House offer to the Senate from Rep. Barney Frank, D-Mass., who is leading the House-Senate effort to assemble a compromise bill. Frank's offer, which the panel will discuss Tuesday, leaves a consumer bureau inside the Federal Reserve, as provided for in the Senate bill. It calls for auto dealers and pawnbrokers to be exempt from the bureau's regulations and oversight. The House bill passed in December excluded auto dealers and pawnbrokers, while the Senate's did not. Auto dealers have argued that while they might assemble loans for car buyers, they do not administer or service the loans. Frank also proposed to add a provision that would place payday lenders, money remitters, check cashers and firms that provide private student loans under the consumer bureau's supervision. The Senate had called for a study of how the consumer agency could regulate private student loan issuers.
[Associated
Press;
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