Detroit Free Press: Debit Rule Delay Helps Small Institutions & Customers Posted by AVCU on 9:43 AM

In a shrinking metropolitan city with high unemployment and a large percentage of financially challenged consumers, two credit union CEOs co-authored an editorial about the need to delay the Fed's interchange controls rule, mandated by Congress last year. Anthony Carnarvon is CEO of Co-op Services Credit Union and Michael Poulos is CEO of Michigan First Credit Union. They tell Detroit Free Press readers that efforts by Congress to cap debit card charges will have the unintended consequence of forcing small financial institutions to cut essential free and low-cost services. In metro Detroit, this will hurt those who can least afford it: middle- and low-income families who are stretching every dollar to make ends meet.The two claim that if effects of the Durbin amendment go into effect as is on July 21st, then retailers will get $20 billion per year. Good for them -- but bad for Detroit's consumers.
Read the editorial.