Fed Legal Opponent Has Lost Accounts To Fees
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TCF National Bank, the financial institution which has taken the Federal Reserve to court over the debit interchange cap, lost roughly 250,000 checking accounts when it announced it would start charging a fee for checking accounts with balances of less than $500.00
According to an article in the March 2011 USBanker, TCF announced the $9.95 fee in January 2010, in anticipation of the revenue blow it would take from interchange and that it had lost 250,000 checking accounts by May. This dropped the bank to the level of checking accounts it had held in 2004, the magazine reported.
The bank has argued in its legal briefs that it is unconstitutional for the government to force a company to provide a product or service at price that is less than the product's costs and that it would be unable to recoup the lost debit interchange in other fees.