CUNA and NAFCU said Wednesday they have joined with a coalition of financial institutions and other trade associations to urge a federal judge to not require the Federal Reserve to put a new debit rule in place while the fate of the original rule is still before an appeals court.
Judge Richard Leon of the U.S. Circuit Court for the District of Columbia overturned two thirds of the Federal Reserve's current debit regulation on July 31 and has stayed his opinion as he took arguments about what should happen next. The deadline for those arguments was Wednesday.
The coalition argued that Leon lacked the authority to order the Federal Reserve to put an interim final rule in place while the case is still before the appeals court.
It also contended putting a new rule into place which might in itself be overturned by the appeals court would hurt all parties concerned – merchants, issuers and consumers – and that doing so would just spur more litigation.
“Interchange is an enormous issue for credit unions and an interim or expedited rule could have devastating effects on credit unions ability to serve their 96 million members,” said NAFCU Senior Vice President of Government Affairs and General Counsel Carrie Hunt.
“Ultimately, consumers will pay the price if there is unpredictability in the marketplace,” Hunt said. Attorneys for the Federal Reserve and the merchant coalition which had brought suit against the Fed have jointly requested an expedited appeal of his ruling on the Fed rule, required by the Dodd-Frank Act and then the Durbin Amendment.
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