On June 29th, not only did the Federal Reserve issue its final rules relating to the Durbin Amendment, but the U.S. Court-of-Appeals in St. Louis, Missouri also upheld an April decision by U.S. District Judge Lawrence L. Piersol that TCF Financial had not proved its claim that the debit interchange fee cap was unconstitutional.As a result, and based on the more generous cap established under the final Regulation II rules, TCF has dropped their lawsuit.
“…William A. Cooper, the bank’s chairman and CEO said in a statement. “The Federal Reserve Board’s final rule is an improvement from its initial proposal and recognizes many of the points we made in our case.”
As one might expect, the bank claimed a victory from defeat and the conclusion of this lawsuit ends any threat that there will be further delays in implementing the Durbin Amendment rules.
