CUNA and NAFCU said Wednesday they have joined with a coalitionof financial institutions and other trade associations to urge afederal judge to not require the Federal Reserve to put a new debitrule in place while the fate of the original rule is still beforean appeals court.

Judge Richard Leon of the U.S. Circuit Court for the District ofColumbia overturned two thirds of the Federal Reserve's currentdebit regulation on July 31 and has stayed his opinion as he tookarguments about what should happen next. The deadline for thosearguments was Wednesday.

The coalition argued that Leon lacked the authority to order theFederal Reserve to put an interim final rule in place while thecase is still before the appeals court.

It also contended putting a new rule into place which might initself be overturned by the appeals court would hurt all partiesconcerned – merchants, issuers and consumers – and that doing sowould just spur more litigation.

“Interchange is an enormous issue for credit unions and aninterim or expedited rule could have devastating effects on creditunions ability to serve their 96 million members,” said NAFCUSenior Vice President of Government Affairs and General CounselCarrie Hunt.

“Ultimately, consumers will pay the price if there isunpredictability in the marketplace,” Hunt said. Attorneys for theFederal Reserve and the merchant coalition which had brought suitagainst the Fed have jointly requested an expedited appeal of hisruling on the Fed rule, required by the Dodd-Frank Act and then theDurbin Amendment.

Related:

• Judge Throws Out Fed's Debit Cap
• CUNA, NAFCU Assail Ruling
• Ruling Could Force CUs to AddProcessors
• Aug. 14 Hearing Set on CapRuling
• Financial Researchers Rate Chances ofAppeal
• Judge Gives Fed One More Week
• Doubts Whether CUs Would Pay
• Fed Gets Another ChanceWednesday
• Flawed Ruling Boosts Fed's Odds: GuestOpinion
• Fed, Merchants Join on Expedited Appeal