Experts Say Federal Reserve May Lack Authority to Appeal
Whether or not the Federal Reserve can or will appeal the July 31 court decision that overturned two-thirds of its debit interchange regulation hinges on several unresolved legal questions.
Primarily, it’s unclear if the agency can launch an appeal on its own, or if it must first gain the approval of the Department of Justice. The question is a good deal more complicated than one might suppose.
“CUNA was extremely disappointed with the District Court’s ruling last week regarding debit interchange,” said CUNA Associate General Counsel Mary Dunn. “While it is inappropriate to lobby the Fed to encourage it to file an appeal, CUNA is working hard to reinforce its view that the Fed should appeal, including ensuring that any senior Fed staff are aware of credit unions’ concerns.”
NAFCU General Counsel Carrie Hunt said her trade group had also been working to make sure the Federal Reserve understood credit union interest in the case, particularly the payment network provisions that she said represent a credit union’s biggest compliance headache from the rule.