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Today's hearing before the Financial Services Committee concerning a bill Reps. Peter Welch, D-Vt., and Bill Shuster, R-Penn., introduced that would regulate interchange rates is a major step forward, lawmakers say. The issue has been debated in the House judiciary and commerce committees in recent years but not in the financial services committee. Committee Chairman Barney Frank "is giving us a hearing. Obviously we are taking this seriously. This is a growing problem. It's a big expense that is getting bigger for these merchants," said Welch. Several committee Democrats showed an interest in the issue, though many said they were far from decided on how to address it. Rep. Maxine Waters, D-Calif., said she is frustrated with the big banks and wants to work with the bill sponsors on some tweaks to the legislation. "Many of us are just at this time very unhappy with the bigger banks in this country," said Waters. "We have bailed them out and they are hurting individual consumers, and I'm particularly concerned about these ... interchange fees." Waters, who also serves on the Judiciary Committee, which passed a bill that would regulate interchange rates last Congress, said she would direct her staff to see what was happening in that committee on the issue now. She said she would work with the bill sponsors to address some of the industry's concerns, saying the "problems and abuses" must stop. "There has to be some changes in the way that these fees operate now," Waters said.
