The Federal Reserve will have another opportunity on Wednesdayto declare how it will replace parts of its rule on debitinterchange that a federal judge invalidated three weeks ago.
|U.S. District Court Judge Richard Leon threw out both the cap ondebit interchange for debit card issuers of more than $10 billionin assets and the network competition provisions in the rule,declaring in his July 31 decision that the regulator had notsufficiently followed the law when it wrote the first rule.
|Only four credit unions are covered by the interchange cap, butall credit unions have to comply with the rule's networkcompetition provisions.
|The National Association of Convenience Stores and othermerchants and associations had sued the Federal Reserve to overturnthe debit interchange regulation which they argued did not reflectthe language or intent of the Durbin Amendment to the Dodd Franklaw.
|Leon had expected the Federal Reserve to propose how it wouldreplace those parts of the debit rule at a hearing on Aug. 14, butangrily gave the Fed another week when they came to that hearingunprepared.
|The Federal Reserve has not announced whether it would appealLeon's July 31 ruling.
|Both sides have until Aug. 28 to file briefs on whether thecourt can order damages paid and what they should be.
|Related:
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
