Law and regulation

A Georgia woman will be allowed to sue debt collector I.C. System for interest fees she paid on veterinary bills, a three-judge appellate panel has ruled, reversing a federal judge's 2009 decision.

Proposed limits on debit card interchange fees should have a neutral to positive impact on eBay Inc.’s PayPal Inc. operations, at least in the short term, Bob Swan, eBay chief financial officer, told analysts Jan. 19 during a conference call to discuss fourth-quarter earnings.

WASHINGTON — The banking industry is mounting an assault on multiple fronts to weaken, stall or repeal the restrictions on debit interchange fees championed by Sen. Dick Durbin in the Dodd-Frank Act before the policy goes into effect this summer.

The head of TCF Financial Corp., which filed a lawsuit against the Federal Reserve Board in October challenging its proposed debit card interchange rate cuts, said Jan. 20 that growing opposition to the proposal may help his case. The effort is part of a multi-pronged attack from banks on the debit interchange restrictions (see story).

The Bangko Sentral ng Pilipinas, the Philippines central bank, has issued new regulations designed to further protect the country’s credit cardholders from abuse.

The Durbin amendment carved out smaller banks from its mandate to restrict debit swipe fees, and at least one of the major networks is willing to oblige, but equity markets do not appear to have cut the group much slack.

Addressing analysts Jan. 19 during a conference call to discuss fourth quarter earnings, Dan Poston, chief financial officer at Fifth Third Bancorp, noted it is too early to predict how the bank will react to reductions in debit card interchange revenue.

U.S. Bancorp had expected to wait to see how other financial institutions reacted to recent legislative and policy changes that have or will affect revenue before deciding on the course of action it takes.

WASHINGTON – In a rulemaking process turned upside down, credit unions and community banks exempt from the Federal Reserve Board’s proposal limiting debit card interchange fees are dominating the comment process, while the big institutions coming under the rule have yet to weigh in (see story).

Defendants that the Federal Trade Commission alleged stole millions of dollars from consumers through unauthorized charges and debits to bank accounts have reached settlement agreements with the FTC.

Mobile-banking access is one of several services financial institutions might start charging for if the Federal Reserve Board’s proposed new debit card interchange rules take affect, one analyst believes.

U.S. consumers will not be receiving any more telemarketing pitches from robocaller Fereidoun Khalilian, under a settlement reached by the Federal Trade Commission.

Police in the of Jakarta have ordered banks operating in Indonesia’s capital city to beef up their ATM security, a spokesperson for the department tells PaymentsSource.

WASHINGTON – The banking lobby is rejecting Visa Inc.’s proposal for a dual system on debit card interchange, saying such a system would only force merchants to migrate to lower-cost cards as mandated for the biggest issuers.

WASHINGTON — A Financial Crimes Enforcement Network plan to require banks to report all international wire transfers to the government is fundamentally flawed and must be significantly scaled back or withdrawn, according to several banks and their representatives.

WASHINGTON – Lawmakers are having second thoughts on a provision creating price controls on debit card interchange they easily approved during last year’s debate on the Dodd-Frank Financial Reform Act.

Qatar Airways Ltd. and DataFlight Europe AS are collaborating to enable authorized bankcard acceptance onboard flights for duty-free purchases, the Doha-based airline announced last month.

New York Gov. Andrew Cuomo, in his first State of the State address, this week recommended the creation of a Department of Financial Regulation that would merge the state's Banking Department, Insurance Department and Consumer Protection Board.

After another year in which legislators and regulators rewrote the rules of the game in the payments industry, equity markets have rendered provisional judgments on which companies face the worst handicaps.

A proposed policy by the European Commission, the European Union’s executive arm, that would hasten migration to a Single Euro Area Payments system also may ban direct debit fees in 2012.