No matter how unpopular the debit interchange regulating Durbin amendment is among credit unions, at least one credit union is not opposing it.
The so-called Durbin amendment to the financial reform act would allow merchants to set limits for the transactions for which they accept debit cards and would mandate the Federal Reserve to establish an interchange rate for debit cards. It is named after its chief supporter, Illinois Democratic Senator Richard Durbin.
According to one of its board members and its CEO Linda Levy, the $26 million Lower East Side People's Federal Credit Union, headquartered in New York City, does not oppose the Durbin Amendment.
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"None of the board members, none of the officers have any problem with the Durbin Amendment," said Feliz Salmon, a board member for LESPFCU and a financial blogger for the Reuters News Service. We all support it."
Salmon participated in a June 9 Washington conference on interchange and made his remarks after his panel discussion had finished. Salmon also expressed doubt about how much of an impact the amendment would have on the credit union's operations or noninterest income.
Levy said the credit union has not taken a position on the amendment and tends to see it in the context of overall financial reform that she said the credit union strongly supports.
"We firmly support financial reform and would not want to do anything that would convey an impression to our Congressional delegations that we didn't," Levy said.
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