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Industry Watchdog to Begin Reporting Unfair Interchange Practices to CFPB.
The Coalition of Merchants Against Unfair Interchange (MAUI) will begin reporting the hidden fees they find to the Consumer Financial Protection Bureau (CFPB) as of September 1, 2011.
Today, MAUI acts as the watchdog for the credit card processing industry. The core objective is to put an end to unfair interchange practices through independent expert validation and assistance for merchants. MAUI began providing data to lawmakers in 2009 in support of Senate Bill 1212, which led to The Card Act of 2009. Following The Card Act, MAUI supported the Durban Amendment, and Dodd Frank Act. The Dodd Frank Act created the Consumer Financial Protection Bureau.
The CFPB exists to restrict unfair, deceptive, or abusive acts or practices through study, education, rule making and enforcement. The FED has taken the first steps toward regulating the credit card processing industry by restricting the amounts issuers can charge acquirers with regard to debit card transactions. However no laws exist to regulate the practices of the processors themselves. The CFPB is currently studying the credit card processing industry in preparation for future lawmaking and enforcement efforts as soon as 2015. No specific date has been set.
MAUI intends to assist the CFPB in three ways:
1. To regularly report, on the behalf of merchants, unfair credit card practices.
2. To help merchants take corrective action until such time as the CFPB has: completed its study of the processing industry, created laws that regulate the industry, and has systems and resources in place to enforce those laws.
3. To regularly report the results of corrective action taken.
“It is imperative that the FED and the CFPB have accurate data that shows what the problems are, who and why they are being caused, and the effect they are having on merchants,” says David Toney, Chairman of MAUI. “We will do everything in our power to help the CFPB achieve our mutual goals and stop unfair practices once and for all.”
For more information contact PR@interchangebrokers.com or visit www.stophiddenfees.us.