A federal appeals court granted on Friday the National Association of Federal Credit Unions and other amici time to present oral arguments in January on the Federal Reserve’s appeal regarding debit interchange fees.
NAFCU and amici, in seeking to participate in oral arguments, noted their members’ stake in the litigation. In August, the Fed appealed a July ruling by federal district court Judge Richard Leon, who overturned the rule that implements the controversial Durbin Amendment of the 2010 Dodd-Frank Act.
The Durbin Amendment required that the Fed establish a debit interchange fee cap that is reasonable and proportional, applies only to financial institutions with over $10 billion in assets and bars network exclusivity.
Leon said the fee cap—set at 21 cents per transaction, plus one cent to cover fraud costs—is too high and that the network non-exclusivity provisions are insufficient. He granted a stay pending appeal.
NAFCU and other amici, including the National Restaurant Association, National Retailers Association and the National Association of Convenience Stores, filed briefs to Leon regarding whether the Fed should issue an interim rule as requested in his ruling. The groups said the court does not have the authority to require the Fed to issue an interim or expedited rule and that pushing the central bank to do so would negatively affect all involved parties.