Interchange Update: Financial Institutions’ Legal Teams Pursuing Options
August 15, 2013
Aug. 15, 2013
Judge Richard Leon has given Federal Reserve attorneys one week to report back to him on revisions to the debit interchange cap.
The Federal Reserve is undecided about appealing the court decision. Meanwhile the judge has extended the current stay on the interchange rule for an additional week, setting the next hearing for Aug. 21.
The Coalition for Electronic Payments is working with a legal team to represent financial institutions.
Credit Union National Association (CUNA) President/CEO Bill Cheney said, “CUNA is alarmed at the possibility any financial institution could be required to pay “damages” for following the rules established by a federal agency.” He pledged to pursue every legal avenue available to prevent such a requirement.
Credit unions with assets under $10 billion are exempt from the fee cap rule and attorneys are expected to argue any such order would not apply to them.
“It is a serious issue for credit unions and we are exploring a variety of options to ensure credit unions’ interests are protected in any changes to the debit interchange regulation,” Cheney said.
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