Photo: Debit Cards for Hispanics
The United States Hispanic Chamber of Commerce (USHCC) and the National Association for the Advancement of Colored People (NAACP) are expressing concern about the Federal Reserve’s proposed caps on debit-card interchange fees set to take effect in July.
“I am concerned that without a thorough examination of the unintended effects of this amendment, the Hispanic community, which relies heavily on debit cards, will suffer a significant burden,” Javier Palomarez, the USHCC chief executive officer, wrote in a letter to lawmakers.
His assertation and that of others is that the limits would force people with low incomes to get rid of checking accounts because of new fees bankers would put on those accounts to make up for the revenue they would lose on debit-cards. Banks are expected to lose some $12 Billion by the cap.
The USHCC, NAACP and others are urging members of Congress to analyze all the possible effects this cap would have.
“Should this occur, then the 80 million underserved consumers in the United States—including thousands of Hispanics who use general-use prepaid debit cards today—would be adversely impacted,” Palomarez wrote in the letter to John Boehner, Speaker of the House.