| Financial regulations have always had an effect on financial institutions and consumer relationships. The Durbin Amendment caused sweeping changes in the retail banking industry regarding activity requirements on checking accounts due to the loss of debit card revenue. The problem in the retail banking industry is the checking account changes being made by financial institutions in response to the Durbin Amendment. The purpose of this mixed-method study was to investigate consumers' reactions to financial institutions' responses to the Durbin Amendment. Theoretical frameworks for this study were Helson's adaptation level and consumer satisfaction through information theories. The target population was retail checking account consumers who were members of four organizations located in metropolitan Detroit. Data collection was based on a survey and an optional face to face interview. One research question and six hypotheses focused on the relationship between consumers' reactions to financial institutions' responses to the Durbin Amendment and specific consumer demographics: age range, gender, if they have an open checking account, if they have additional checking account owners, type of financial institution(s) they have an open checking account with, and if they had prior awareness of the Durbin Amendment. Data analysis included statistics and a summary narrative. The findings indicated that age range, having an open checking account, checking account ownership, and type of financial institution(s) had an effect on consumers' reactions to financial institutions' responses to the Durbin Amendment, but prior awareness of the amendment and gender did not affect consumer reactions. Recommendations include modifying this study with an online survey; using a larger sample; and increasing awareness of the effects of financial regulations on financial industry leaders, consumers, and government regulators. |
