Bank and credit union trade groups yesterday filed a “friend of the court” brief urging Judge Richard Leon not to order the Federal Reserve to issue an interim rule on interchange.
The groups argued that Leon has no legal authority to order the Federal Reserve Board to conduct rulemaking. Even if he did, they said, “a rush to issue a new rule will harm all affected interests, including consumers, and threaten the effective functioning, stability, and security of the electronic debit card payments system.”
Finally, they said, an interim rule would invite further legal challenges from the Fed or issuers who could contest “the confiscatory nature of an interim interchange fee rule.”
Leon ruled last month that the Fed’s rule violated congressional intent in the Dodd-Frank Act by setting the interchange fee cap too high and failing to allow merchants to choose multiple unaffiliated PIN and signature networks for each card transaction they process.
Read the brief.
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Credit Unions and Community Banks waste so much time and effort bickering with each other when over 90% of the time, our issues are aligned. Unfortunately, I do not expect this to change anytime soon!
ReplyDeleteCredit union and bank trade associations bicker.
DeleteUninformed or worse, fearful credit union and banks join in the bickering.
The smart ones know better and will continue to disaffiliate and put the money into marketing.
Lobbyists and lawmakers equal waste of money.