Debit Fee Combatants Agree Cap Should Remain Pending Appeal
It might be unusual, but all sides in the Federal Reserve's debit interchange regulation battle have urged the court to leave the now-overturned regulation in place pending appeal.
U.S. District Court Judge Richard Leon dispatched two-thirds of the Federal Reserve's current debit interchange regulation on July 31, agreeing with the opinion of the case's merchant plaintiffs that the Fed had failed to follow the law in developing the regulation.
Further, they doubted whether a court would have the authority to get the Federal Reserve to order any additional money they paid in debit interchange before a new rule was put into place be given back to them.
For its part, the Fed also supports keeping the existing rule in place, arguing first that doing so while it appealed Leon's decision meets the requirements of the Administrative Procedures Act and, secondarily, getting rid of the existing rule would leave in place the precise situation Congress sought to avoid in regulating debit interchange in the first place.