The banking industry has been pushing back against the new Trump administration’s attempt to block them from using the federal government’s electronic payments system.
A coalition of banking groups, trade groups and consumer groups are joining a lawsuit filed Friday against the Trump administration, seeking to block the agency from blocking access to the bank’s online banking product.
The lawsuit argues that the agency’s move is an overreach of its powers.
“Banking is a vital tool for keeping Americans safe and growing the economy,” said the coalition’s president, David Sirota.
“We urge you to use the court system to hold accountable the Trump Administration’s actions and protect the livelihoods of consumers.” “
Trump has promised to repeal Dodd-Frank, the law that regulates Wall Street and other financial institutions. “
We urge you to use the court system to hold accountable the Trump Administration’s actions and protect the livelihoods of consumers.”
Trump has promised to repeal Dodd-Frank, the law that regulates Wall Street and other financial institutions.
In December, the White House withdrew a key provision of the law aimed at preventing banks from creating so-called “shadow banks” by charging them fees and withholding their customers’ funds.
Those fees would have allowed banks to charge customers a fee to access their accounts.
The withdrawal is the latest sign of the Trump team’s efforts to undo the Dodd-Conveyance law.
The law, passed in 2010, was designed to make banks less risky by limiting their ability to engage in risky lending practices and by encouraging them to maintain greater diversity in their lending.
The coalition says that the Trump plan would also allow banks to raise fees and charge customers higher fees to access the bank services they offer, and would prohibit the government from regulating banks’ riskier lending practices.
The group said that if the Trump budget proposal is approved, “there is little doubt that banks and other large financial institutions would find ways to increase their fees and charges to increase profits, and that they would continue to abuse customers’ trust and confidence in the financial system.”