Law and regulation

WASHINGTON–Banks appeared to be gaining the upper hand in their battle against retailers to delay pending interchange fee caps, but the fight was far from over.

All merchant acquirers and card issuers in India would have to establish adequate risk-management systems and processes to help prevent card fraud within the next 12 months under proposals outlined in a central bank working group report released June 2.

WASHINGTON — A sponsor of legislation to ease the impact of interchange rules on banks announced another revision Tuesday as lawmakers prepare for a vote later this week.

WASHINGTON – Chief sponsors of a bill to delay the cuts in debit fees were still searching for a compromise this morning as they appeared to be short of the 60 Senate votes necessary to pass the delay.

As credit card charge-off rates continue on a path to hit record lows next year, the number of consumers seeking credit-counseling help also is declining.

WASHINGTON – U.S. Public Interest Group, the leading consumer lobby on Capitol Hill, called on lawmakers to reject efforts to delay implementation of the cuts in debit fees, saying the issue has been studied long enough and the cuts will help consumers.

The Federal Trade Commission has settled two actions that charged marketers with claiming they could reduce consumers’ credit card interest rates. Both operations allegedly made deceptive telemarketing calls, called consumers on the Do-Not-Call Registry, and used illegal robocalls. The settlements will ban all of the defendants from selling debt relief services.

The National Retail Federation launched radio campaigns in several states Tuesday to urge senators to oppose the delay of debit card interchange caps.

The Federal Trade Commission has settled two actions that charged marketers with claiming they could reduce consumers’ credit card interest rates. Both operations allegedly made deceptive telemarketing calls, called consumers on the Do-Not-Call Registry, and used illegal robocalls. The settlements will ban all of the defendants from selling debt relief services.

With an estimated $541 million in unpaid debt, the Los Angeles City Council this week created a position that will be held responsible for deciding whether debts should be placed into collections or if they should be charged off.

West Virginia Attorney General Darrell McGraw has filed suit to ban Morgan Drexen Inc., a company claiming to provide debt settlement services, from doing business in the state.

For $410 million, Bank of America Corp. has bought itself out of a massive class action over sorting of overdraft fees (see story).

Thailand’s Ministry of Finance on May 12 announced its decision to launch a credit card financing initiative that is raising concerns among key players in the country’s banking industry.

Two-thirds of consumers surveyed last fall did not believe interchange regulations that that would limit how much retailers pay to accept debit cards would result in merchants lowering the prices they charge, according to research from Javelin Strategy & Research.

Two-thirds of consumers surveyed last fall did not believe interchange regulations that that would limit how much retailers pay to accept debit cards would result in merchants lowering the prices they charge, according to research from Javelin Strategy & Research.

Delay or customers will pay — from new deposit charges to merchant fees.

Lawyers for the Federal Reserve told a federal appeals court Friday in South Dakota that expectations by Minnesota’s TCF Bank for a continued revenue stream from debit transactions are not dependent on the free market but on card giant Visa, which paid the bank $100 million in debit fees last year.

U.S. banks and payments companies are attracted to China’s explosive population growth and surging economy, but the country’s regulatory climate makes the market a wild card.

WASHINGTON — Although Senate leaders have confirmed they will allow a floor vote soon on delaying interchange fee restrictions, the timing, outcome and vehicle for suspending the proposed cap are still anyone's guesses.

This story was updated from its original version.