A federal judge on March 4 rejected a request by Minnesota’s TCF National Bank for a preliminary injunction barring the Federal Reserve Board from finalizing its rules on debit fees.
But the judge also denied the Fed’s request to throw the suit out, meaning the legal action will continue as the Fed finalizes its rule. U.S. District Judge Lawrence Piersol agreed to take the Fed’s motion to dismiss under advisement.
The suit by TCF has been joined by banks and credit unions challenging the controversial rule, as well as merchants who support the proposed cuts in debit fees, amounting to more than $20 billion last year.
The Fed has proposed capping debit interchange at 12 cents per transaction, down from the average of 44 cents today.
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