Federal Reserve files its brief in interchange case
Aug. 28, 2013 – The Federal Reserve has filed its brief to Federal Judge Richard Leon on whether or not it should issue a final interim rule in the debit interchange case.
The Fed Board, represented by General Counsel Scott Alvarez at the hearing on Aug. 21, showed no interest in issuing an interim final rule in this case saying it would only confuse the financial industry and likely would cause more harm than no rule being in place at all – should Leon decide to vacate his current stay. Shortly after the hearing, the Fed filed an expedited appeal and requested a stay of the court’s decision pending the appeal.
Late Monday evening, the Fed filed a consent motion for a stay of Leon’s decision, pending appeal. Both the Fed and merchants agree that a stay is in the best interest of both parties.
NAFCU agrees that a stay in this case is the best option for credit unions. A change in the interchange rule would only upset the marketplace and could have lasting negative effects on credit unions. NAFCU will keep members updated as this case proceeds.
NAFCU interchange issue page