Fed Appeals Rejection of Rule on Debit Card Fees
The U.S. Federal Reserve has rejected Federal District Judge Richard J. Leon’s decision to strike down its debit card swipe fee regulation and will appeal the ruling, according to Fed attorney Scott G. Alvarez. The move was praised by American Bankers Association president Frank Keating, who says the option to appeal is right “for consumers who value debit cards and the financial institutions that serve them.” However, the National Retail Federation’s J. Craig Shearman is disappointed with the Fed’s decision to appeal, noting the central bank “has taken a position that will drag this out while retailers and their customers continue to pay billions of dollars in inflated fees.” Leon hinted that one option for him was to instruct the Fed to write a replacement or interim rule to meet his objections while the appeal proceeds. Alvarez says the Fed is opposed to this as it might destabilize its position during the appeal. Leon is holding off on his decision to overturn the Fed’s debit fee rule while the parties involved decide their next course of action, but he did ask Alvarez to file briefs by Aug. 28 that would include arguments why the district court is not empowered to direct the Fed to draft a replacement rule.
From “Fed Appeals Rejection of Rule on Debit Card Fees”
New York Times (08/22/13) Eavis, Peter