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Hundreds of Thousands of Consumers, Billions of $$ Move to Credit Unions

Credit Unions open new branches all the time.

No one said they didn't. I said it would be stupid to open additional branches to serve an area where you didn't have a reasonable concentration of existing clients. Aka, no CU is going to open up a branch where it has no clients.

Unintended conseuquences. The CU's realize how the Durbin Ammendment will affect them, which is why 92% of CU's that offer debit cards say they will start charging fees.

CUs are exempted from the Durbin Amendment for the vast majority. Very few CUs break $10 billion.

Perspectives on the Durbin Amendment: Prof. Todd Zywicki

Furthermore, that's actually not what they said:

The Durbin Amendment and the truth behind debit card fees - Mywesttexas.com: Columnists

"According to the Credit Union National Association's 2010-2011 Fee Survey, 91 percent of credit unions offering debit cards anticipate making some sort of change to their rates, fees and/or services as a result of the negative impact of the regulation."
 
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No one said they didn't. I said it would be stupid to open additional branches to serve an area where you didn't have a reasonable concentration of existing clients. Aka, no CU is going to open up a branch where it has no clients.
And I originally indicated, way back when, that CU's would open branches in other areas to chase people that meet their membership requirements. The fact that more money is moving into that branch of hte financial industry just makes that even more likely.



CUs are exempted from the Durbin Amendment for the vast majority. Very few CUs break $10 billion.

Perspectives on the Durbin Amendment: Prof. Todd Zywicki

Furthermore, that's actually not what they said:

The Durbin Amendment and the truth behind debit card fees - Mywesttexas.com: Columnists

"According to the Credit Union National Association's 2010-2011 Fee Survey, 91 percent of credit unions offering debit cards anticipate making some sort of change to their rates, fees and/or services as a result of the negative impact of the regulation."

I guess you don't quite understand unintended consequences. As the CUs are well aware, as they have stated, and why they were against the Durbin ammendment, no business will pay CU's what they currently pay them in swipe fees when they can just pay much lower swipe fees to the banks by going with other networks. You run a business and have the choice of paying 11 cents in swipe fees to network A that has big banks and the millions of customers or 25 cents in swipe fees to network B that has mostly CUs and their few thousand customers. Which one would you do business with?

All of those things are basically fees. The CU ends free checking - the result? an increased fee or a new fee where none previously existed. But if you prefer... due to the Durbin Ammendment, customers of 91% of CU's will be paying more to the CU or getting less value from the CU. Once 91.0% of the CU's do it, what do you think the chances of the other 9% not following? Probably 0%.
 
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