After Fed Final Rule, TCF Withdraws Interchange Suit

Register now

WASHINGTON — TCF Financial Corp. on Thursday abandoned pursuit of a lawsuit against the Federal Reserve Board on its proposed debit interchange rule.

The company said it requested the U.S. District Court in South Dakota to dismiss its case without prejudice.

"We believe our lawsuit has served its purpose in demonstrating the unfairness of the Durbin amendment and that it is time for us to move on," said William Cooper, chairman and CEO of TFC, which holds $18.7 billion in assets, in a statement.

That decision, the bank said, follows the Fed's final rule on interchange, which did not resolve the effectiveness of a $10 billion exemption for small-bank issuers, as well as a federal appeals court decision to reject the company's request to delay the Fed's new rule from taking effect.

The Fed's Board agreed 4-1 on Wednesday to lift the fee that merchants must pay banks every time a debit card is swiped to 21 cents, plus some fraud costs, up from its original 12-cent cap.

For reprint and licensing requests for this article, click here.
Community banking