Carrie Hunt, the senior vice president of government affairs and general counsel for the National Association of Federal Credit Unions, said that the Federal Reserve’s counsel will release details next week as to whether a debit interchange interim rule is feasible.
Late last month, U.S. District Court Judge Richard Leon invalidated the central bank’s rule on debit interchange fees and ordered the regulator to rewrite it, saying the rule went against Congress’ intent.
Hunt said if the court’s ruling is not challenged, or if it is upheld on appeal, the Federal Reserve Board would be required to make changes to its final rule in order to satisfy the court’s interpretation of the Durbin Amendment, the Dodd-Frank provision that called for the Fed to craft the rule.
Leon said his order will remain in place until the next conference on Wednesday, Aug. 21, when Fed Board General Counsel Scott Alvarez will appear. On Wednesday, Aug. 28, briefs on an interim rule are due, and on Monday, Sept. 16, briefs on the remedy are due.
Hunt said the issue of remedy has not arisen in the case, adding that she anticipates legal arguments would be made against the result. The court will permit amicus briefing on the issue.