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Republicans Are Moving to Scrap Rules That Limit Overdraft Fees

Matthew Zeitlin, reporting for BuzzFeed:

Last week, Georgia Republican Sen. David Perdue introduced a resolution in Congress, alongside other Republicans including his fellow Georgian Johnny Isakson, to throw out a new package of rules for the prepaid debit card industry.

The rules, finalized by the Consumer Financial Protection Bureau in October, include limitations on overdraft fees, which have become a significant source of consumer complaints about the financial industry — and an important revenue stream for Georgia-based financial firm Total System Services, whose NetSpend unit is the country’s largest manager of prepaid cards, according to a 2015 financial filing.

The vast majority of prepaid debit cards don’t come with overdraft fees, but NetSpend’s do, and the fees accounted for 10-12% of its overall revenue in 2016, or $80-85 million, the company told investors in October. Its parent has spent big on lobbying and political donations in a bid to kill the rules: in the last three months of 2016 alone, it spent some $270,000 lobbying Congress.

Again, this should be absolutely bipartisan. The people who are hit by these usurious overcharge fees are Republicans and Democrats alike. There’s no liberal/conservative angle to this. It’s just wrong.

And look at the deal Total Shitbag Services gets out of this: they spend $270 thousand lobbying Congress in order to preserve nearly 100 million in fees.

Kakistocracy.

Wednesday, 8 February 2017