Appeals Court Clears Way For Feds Vote On Final Debit Rule
ST. LOUIS – A federal appeals court this morning declined a request by Minnesota’s TCF Financial to block the Federal Reserve’s final rule on debit caps, clearing the lastl hurdle for a vote on the rule later this afternoon.
In a unanimous ruling the U.S. Court of Appeals for the Eighth Circuit upheld an April decision by a lower court that the $18 billion bank hadn’t shown it was likely to prevail on its claims the cap is unconstitutional.
“No legal prohibition exists against TCF fully recouping the costs of its debit-card services by assessing customer fees,” the three-judge appeals court panel said this morning.
The TCF suit, which is backed by CUNA, NAFCU and the banking groups, sought to stop the Fed’s final rule capping debit fees at the nation’s largest banks and credit unions.