Judge Won’t Stop Interchange Rule from Taking Effect (Monitor: April 5, 2011)
A federal judge will allow a lawsuit seeking to block the Federal Reserve Board’s debit interchange rule, but will not issue an injunction to block the rule.
CUNA News Now reported that U.S. District Judge Lawrence Piersol in South Dakota declined to dismiss the suit filed by TCF National Bank.
The TCF suit, which was filed last October, alleges that portions of the Dodd-Frank Act that would require the Federal Reserve to set restrictions on debit card interchange fees are unconstitutional.
Specifically, the suit states that the government cannot write laws that would force a given business to take a loss on one of its various business operations.
CUNA, the Clearing House Association L.L.C., American Bankers Association, Consumer Bankers Association, The Financial Services Roundtable, Independent Community Bankers of America, Midsize Bank Coalition of America and NAFCU have backed TCF in its suit.
Credit Union National Association (CUNA) General Counsel Eric Richard said that Monday's developments were "just one step in a long legal process and CUNA will continue to be a part of that process."
Click here to read the full story at CUNA News Now.