Overturning a proposed debit interchange cap on legal grounds may set a precedent against exempting credit unions from future regulations that affect large banks and other financial institutions.
Sen. Jon Tester (D-Mont.) said that the bill he introduced today to delay the implementation of the Fed’s interchange rule is “going to help small banks, credit unions and consumers.”
Sen. Jon Tester (D-Mont.) introduced legislation today calling for a two-year delay in the implementation of the Federal Reserve’s rule on debit interchange and a study of the issue.
Sens. Jon Tester and Bob Corker will likely introduce legislation early next week that would mandate a two-year postponement of the implementation of the Federal Reserve’s proposed rule regulating interchange fees.
Comment letters, congressional testimony and in-person visits with lawmakers in Washington are key components of a concerted strategy to kill, delay implementation of or at the least modify the Federal Reserve’s proposed rule on debit interchange fees.
Since the earliest days of American history, concerns about tax policy have prompted individuals and groups to express their opinions, sometimes in dramatic ways. The Pennsylvania State Employees Credit Union has never dumped tea into a harbor, but its political awakening began when Congress considered imposing taxes on credit unions.
The ink is barely dry on the financial overhaul bill and already some lawmakers and interest groups are looking at ways to tweak it.
A few credit unions have begun to detail the impact of the Federal Reserve's proposed cap on debit card interchange, telling the agency that its proposed rule will sharply hurt their bottom lines.
Despite repeated assertions that a debit card interchange cap would not really hurt credit unions, CUs have begun to outline the cap's impact for the Federal Reserve.
Democratic Senator Richard Durbin, principal sponsor of the debit interchange amendment bearing his name, defended that amendment in a Jan. 18 letter to Illinois bank and CU trade associations.