National Education Association calls for delay on debit-card limits

The National Education Association (NEA) is joining the call to delay new limits on debit-card fees, saying they could negatively affect middle- and lower-income consumers, including teachers.

Instead, the group is backing legislation that would delay the fee limits for one or two years as the impact of the provision included in the Dodd-Frank financial reform law is further analyzed.

That measure, dubbed the Durbin amendment after primary backer Sen. Dick Durbin (D-Ill.), has been the subject of a hotly contested lobbying fight pitting banks against retailers for billions in potential revenue.

"While the Durbin amendment is a well-meaning attempt to benefit merchants of all sizes ... it is becoming clearer that it may have unintended consumer impacts," the NEA wrote in its letter, which was sent to congressional leaders. "Further study is warranted to determine if the proposed federal controls on interchange fees for debit swipes ... will meaningfully benefit merchants and their consumers, or if such control will instead result in consumers paying higher prices for the banking services critical to their financial well-being."

Legislation was introduced earlier this month that would stop the Federal Reserve from finalizing rules that would drastically limit debit-card fees. Those rules are set to be finalized in April, but a bill introduced by Sen. Jon Tester (D-Mont.) would delay the rules for two years as the matter is studied. A similar bill introduced in the House would delay the rules for one year.

The NEA joins the National Association for the Advancement for Colored People as non-banking groups airing concerns about the Durbin amendment. The group similarly called for a review of the provision, saying it was concerned the new limits could adversely affect at-risk communities, including minority communities.