ND1128111

Title: Justice Department To Review Debit Fee Antitrust Allegations

Description: Responding to congressional concerns, the U.S. Justice Department is reviewing recent actions by the banks to assess whether antitrust laws have been violated.

Page Content: WASHINGTON ? The U.S. Department of Justice (DOJ) indicated last week it is reviewing bank actions regarding debit card fees, Payments.com reports.

�

The review follows a request last month by Rep. Peter Welch (D-VT), who urged the DOJ to consider whether antitrust laws have been violated regarding the fees.

�

?I am pleased that the Justice Department is taking this request seriously,? Welch said. ?While big banks like Bank of America beat a hasty retreat on their debit card fee strategies, I have no doubt that they will continue their quest to dig deeper into the pockets of struggling consumers. As they consider their next move, they should be aware that there is a cop actively on the beat.?

�

Welch led opposition in the House earlier this year after Bank of America and other banks announced new debit card fees. In a letter to Attorney General Eric Holder, he raised concerns as to whether the banks had coordinated their debit card fee strategies in violation of federal antitrust laws.

�

Responding to Welch, Assistant Attorney General Ronald Weich said:�?The Department of Justice is reviewing the statements and actions by banks and their trade associations regarding possible increases in consumer fees for using debit cards. Please be assured that if it finds that individuals, banks, or other parties may have violated antitrust laws, the Department will take appropriate action.?

�

While Bank of America and other banks reversed plans to charge customers new debit card fees, according to press reports, many have quietly increased other fees, such as those for replacing a debit card or maintaining a checking account.

Content Subject: Government Relations

Formatted Article Date: November 28, 2011

post now find out