CUs Join Suit To Block Interchange Amendment
TCF is Minnesota’s second largest bank holding company but filed the suit in South Dakota where it is incorporated.PIERRE, S.D. – Credit union and bank groups will file a brief as early as today asking a federal court to block implementation of the debit interchange fee provisions of the Dodd-Frank Financial Reform Act.
The so-called friend of the court brief by CUNA, NAFCU the American Bankers Association, and the Independent Community Bankers of America, will be filed as part of a suit by TCF Bank challenging provisions of the Durbin amendment that will set caps on interchange fees collected by financial institutions.
The amicus brief cites problems with the Durbin amendment, including the directive that the Federal Reserve set “reasonable and proportional rates” on interchange, that the language does not allow for all reasonable costs incurred in setting the allowable fees and that the requirements on routing and exclusivity are problematic, according to Mary Dunn, senior regulatory lobbyist for CUNA.
TCF, in a suit filed last October, claims the Durbin amendment illegally interferes with the $18 billion bank’s activities in a market that has been competitive and open by imposing unconstitutional limitations on the ability of TCF and other financial institutions to recover their costs for providing a service crucial to bank depository customers today.
TCF is Minnesota’s second largest bank holding company but filed the suit in South Dakota where it is incorporated.