Arlington, VA-The American Consumer Institute (ACI) joined the Southwest Public Policy Institute and a coalition of organizations in urging the Federal Deposit Insurance Corporation to finalize its proposed State Bank Parity rule as written. The rule would apply a host state’s laws to the services an out-of-state state bank provides there only to the same extent those laws apply to an out-of-state national bank, whether or not the bank has a branch in that state. The coalition’s letter argues that consumers should not lose access to, or pay more for, a state bank’s card, account or loan because of the charter the bank holds. By the FDIC’s own estimates, the rule would spare state banks roughly $308 million in one-time system upgrades and $6.7 million a year in documentation costs tied to Illinois’s Interchange Fee Prohibition Act. The coalition urges the FDIC to act well before that law takes effect on July 1, 2027, so banks and the customers they serve are not left with a patchwork of state rules.
Read the coalition letter here.
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