WASHINGTON – A bipartisan group of Senators is planning to introduce a bill as soon as next week that would delay implementation of the controversial Federal Reserve rule to cap fees on debit transactions for two years while the Fed studies the issue.
But the Senate bill, which is expected to be matched by a similar measure being introduced in the House, faces rough sledding because it would need 60 votes to overcome an expected filibuster by Sen. Richard Durbin, the Illinois Democrat who crafted the interchange language.
The bill is being drafted by two members of the Senate Banking Committee, Democrat Jon Tester of Montana and Republican Bob Corker of Tennessee, Capitol Hill sources confirmed for the Credit Union Journal this morning.
The legislative action comes as the clock is running down on the interchange proposal, required as part of last year’s Wall Street reform bill, giving the Fed until April 21 to enact a final rule, which would take effect by July 21.
The stakes are huge as some $20 billion a year in interchange fees accrues to credit unions and banks, with credit union earning an estimated $2.6 billion last year.