Capping bank card charges is folly

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I refer to last week’s letter from the LibDem MEP Catherine Bearder.

Ms Bearder states that “UKIP stands up for wealthy bankers” whereas the case is that she stood up for the EU taking more ham-fisted control over everybodys lives and may cause even more costs to the consumer.

She says the capping of bank card charges for retailers will ensure savings are passed on to the consumer. This is arrant nonsense as shown by the evidence already in place.

In Spain, where this is already in place, retailers have walked away with a €2.7bn windfall over 5 years and there is no evidence of cost savings to consumers (https://ideas.recep.org/p/pra/mprapa/43097.html) .

The same situation pertains in the USA (The Durbin amendment to the Dodd-Frank Act). After 3 years major retailers got an $8bn annual windfall and 94% of consumers had not reported any significant savings.

Furthermore, the money removed from the banking system by this measure can lead to loss of free banking for consumers. It is reported that a million Americans were forced out of the free banking system as a result. There is a research paper from George Mason Law and Economics which readers can look up to verify this.

In short, Ms Bearder has gone along the “EU is right, whatever” route, which she habitually does. Whereas UKIP has actually researched the issues and come to a reasoned conclusion. To attack us for thinking about the results rather than just blindly accepting what the EU tells us is one of the reasons why there is now only one LibDem MEP left. We research and judge each case on its merits, they do not. Ms Bearder and her party are on the wrong side of history, as the General Election results on May 7th will show.

Ray Finch

UKIP MEP South East England