CUs Defend Durbin Cap
Credit unions have argued before U.S. District Judge Richard Leon in defense of the Federal Reserve's existing Durbin amendment regulation.
The arguments came in a friend of the court brief filed in a case that pits the group of retailers and retailer trade associations against the Federal Reserve. The group has filed suit against the Federal Reserve to force the regulator to cut the rate of debit card interchange more deeply than it did in the existing regulation.
The coalition argued that the current regulation already violates the intent of the Durbin amendment because it sets the interchange cap at below cost. “In these respects, the final rule contravenes the Durbin amendment’s requirement that the interchange fee that an issuer may receive 'shall' be 'reasonable and proportional to the cost incurred by the issuer with respect to the transaction,’” the coalition argued.
The group also attacked the current regulation's networking rules as well as the merchant's proposed changes.