Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
What could come next in interchange case: CUNA
WASHINGTON (1/22/14)--As Credit Union National Association General Counsel Eric Richard noted last week, the discussion by a trio of judges Friday in the ongoing debit interchange fee cap case presented many positives for credit unions. However, Richard reminds credit unions there are a range of possibilities for how the court could proceed.

The U.S. Court of Appeals for the District of Columbia Circuit heard oral arguments from CUNA, the Federal Reserve and a merchants coalition in the case known as NACS, et al. v. Board of Governors of the Federal Reserve System.

Comments by the judges at that time raised real questions about whether they will fall in line with a lower court ruling that sought to overturn the Federal Reserve's debit interchange fee cap regulations. However, their possible action options include:
  • Reversing the case and sending it back to U.S. District Court Judge Richard Leon for further consideration;
  • Forcing the Federal Reserve to revisit the interchange cap rule; or
  • Affirming Leon's July decision that struck down the rule.
Judges David Tatel, Harry Edwards and Stephen Williams last week seemed to indicate they would take a close look at Leon's decision to strike down the Fed's interchange rules. (That ruling was stayed pending appeal.)

This closer look could potentially result in more costs being taken into account in the setting of interchange fees than Judge Leon's decision would allow, Richard said.

The case was brought by a merchants coalition in 2012, seeking to overturn the Fed's debit interchange fee cap regulations. The judges last week heard oral arguments from the Fed, a coalition of financial services groups, including CUNA, and merchants. (See Tuesday NewsNow story: Appeals court to closely examine lower court interchange ruling.)

The appeals court will rule on the case before its term ends in August, and a decision could come as soon as this spring.


RSS print
News Now LiveWire
#FreeGasFriday courtesy of @tvfcu, TN #creditunions http://t.co/wDRFYJVlpz
12 hours ago
If you were unable to watch or attend @cuna 's @thehill Hill forum on Wed., you can now watch the archived version: http://t.co/FhUnp7HbU8
13 hours ago
Time is running out. If you haven't taken the #NewsNow readership survey, please click here now: http://t.co/4Gp6C2Wa4o
13 hours ago
African financial inclusion possible with mobile money: @IMFNews study http://t.co/0V5DTQToxY
14 hours ago
Louise Herring's birthday is Saturday. 105 years later, her legacy lives on through her kids http://t.co/oMqGADmo0d http://t.co/T3NmS9NqEY
15 hours ago