UPDATE: Dodd-Frank Strikes Again
UPDATE (Nov. 2, 2012): Yesterday, Parkmobile USA apologized for the “potentially confusing impression that Federal legislation is to blame” for the company’s recent fee increases. The apology followed what Roll Call characterized as a “sternly worded letter” from the man himself, Senator Dick Durbin (D-IL).
The simple fact is that federal legislation – Dodd-Frank generally and the Durbin amendment specifically – created the completely predictable scenario in which companies, including Parkmobile, would increase fees on users. Senator Durbin’s letter is nothing short of political intimidation intended to silence critics and obscure the disruptive impact of overregulation.
Nov. 1, 2012: Conservatives have been opposed to Dodd-Frank since its inception. This Wall Street “reform” bill is a Pandora’s Box of regulations, and a year after the passage of the law, “many of the rules remain[ed] unwritten.” Heritage’s Ed Feulner explains the law creates institutions designed to impose a mind-numbing amount of regulations and an ever-growing bureaucracy. Congress punted “on an important issue that affects millions of people,” namely, the financial industry, by granting vast regulatory power to unaccountable bureaucrats.
The unintended consequences of Dodd-Frank are slowly beginning to impact consumers. Earlier this month, customers of Parkmobile USA Inc., a company that runs D.C.’s pay-by-phone parking service, received an email that stated:
“Beginning October 29th, transaction fees in DC will increase from $0.32 to $0.45 due to increased costs triggered by recent federal legislative reform enacted by the Dodd-Frank Wall Street Reform and Consumer Protection Act’s Durbin Amendment.”
As it turns out, the left can’t even get out of its own way! People trying to do the “green” thing and pay for their parking by phone (as opposed to those nasty, pollution-inducing coins) are now taking the financial hit resulting from Dodd-Frank regulations.
Those on the left will deny this increase in fees is Dodd-Frank’s doing, but Parkmobile spokesman Laurens Eckelboom explained that Durbin’s amendment put a cap on all debit fees, prompting banks to eliminate lower rates for smaller transactions like parking.
Heritage predicted this:
“Dodd–Frank also empowers the Federal Reserve to lower the fees that financial institutions may charge retailers for processing debit card purchases. The reductions in revenue have prompted higher fees on other banking services.”
This is definitely an annoyance and added burden if you’re living in D.C., but more importantly it serves to prove conservative opposition to Dodd-Frank regulations was just. And rest assured, the longer the law remains on the books, the more unintended consequences will hammer consumers all across the country.