February 26, 2024

Marshall, Durbin Want to Weaponize Gov’t Against Credit Card Bill Critics

Sens. Dick Durbin (D-IL) and Roger Marshall (R-KS) are pushing the Biden administration to weaponize the federal authorities in opposition to opponents of their bank card invoice.

Marshall and Senate Judiciary Committee Chairman Durbin are pushing the Transportation Department and the Consumer Financial Protection Bureau (CFPB) about “troubling reports” of unfair and misleading practices in airways’ frequent flyer and loyalty applications. If true, Marshall would appear to be working with Durbin to unleash the federal government in opposition to Americans, an accusation he has lobbed at Democrats.

The two lawmakers cited stories, claiming “airlines are changing point systems in ways that are unfair to consumers, including by devaluing points, meaning it takes more points than initially marketed to achieve the promised rewards.”

Marshall and Durbin lobbying the federal authorities to goal opponents of their invoice doesn’t sit properly with these in Congress.

“This entire investigation is happening only because the Durbin credit card bill isn’t passing, so this is his revenge. Durbin and his allies are using the administrative state as a weapon, just like the Biden regime has weaponized every agency against Elon Musk for failing to toe the line,” a Senate aide advised Breitbart News.

“It’s beyond inappropriate,” the aide continued. “It’s more fitting for a banana republic than America.”

Durbin and Marshall are pushing their bank card invoice, the Credit Card Competition Act, by which they hope to inject extra competitors into cost processing by requiring banks to work with at the least one different cost community in addition to Visa and Mastercard, the dominant gamers within the trade. Critics of the invoice contend that it could, as well as to compromising the safety of cost processing, kill bank card reward applications. Indeed, main airways have been vocal of their opposition to the invoice.

A spokesperson for Airlines for America, an affiliation representing America’s main airways, stated, in a press release to Breitbart News, “Millions of Americans choose to use airline credit cards every day because of the tremendous benefits they provide. Rewards cards generate immense value for consumers, and the Durbin-Marshall bill would significantly change credit card points, negatively impacting travelers.”

FreedomWorks wrote that the Durbin-Marshall invoice might scrap bank card rewards, related to how the Durbin Amendment restricted debit rewards.

Airlines for America estimates that 63 p.c of whole frequent flyer miles/factors earned in 2022 have been generated by way of an airline bank card, and these bank cards paid for 15 million home customer journeys that supported $23 billion in financial exercise in 2022.

Despite the common American’s curiosity in bank card reward applications, extremely, Marshall said in September that bank card rewards “are for rich people.”

Whenever a shopper swipes a bank card for a purchase order, the transaction is routed over a cost community, comparable to Visa or Mastercard. Visa or Mastercard prices the service provider an interchange charge for securing the transaction, and the bank card issuer, comparable to Chase or Capital One, receives a part of the interchange charge for protecting the prices of the lending.

In response to a remark request from Breitbart News, a Durbin spokesman pointed in the direction of the senator’s remarks, which disputed claims that the invoice would go after airline rewards.

Durbin said in December on the Senate ground:

They even have recruited allies, together with some within the airline trade, to breathlessly declare that my invoice would make frequent flyer rewards applications disappear. United Airlines CEO Scott Kirby lately stated that my laws would “kill rewards programs.” Let me be very clear: That is a patently false assertion.

“Airlines have a long track record of deceptive practices with their points and rewards programs, retroactively taking away perks and benefits that Americans have bought into,” Marshall stated in a press release to Breitbart News. “Many consumers will often pay extra for flights, specifically to earn miles and gain status upgrades, only to have the rug pulled out from under them when airlines decide to continually raise the threshold. Americans are fed up with having no recourse when major airlines pull a fast one and betray their loyalty.”

Sens. Marshall and Durbin have but to reply to a follow-up query if their efforts to enlist the assistance of the Transportation Department and CFPB are in response to the airways’ opposition to their bank card invoice.

Sean Moran is a coverage reporter for Breitbart News. Follow him on Twitter @SeanMoran3.