Interchange Lawsuit to Fed: Release Reg Early Posted by AVCU on 10:37 AM

Minnesota’s TCF Bank asked a federal appeals court yesterday to order the Federal Reserve to provide the court with an advanced copy of the Fed’s final debit rule to be voted next week, in order to help the court deliberate over the bank’s suit to stop the rule.

Today's CU Journal reported the highly unusual court request by TCF Bank that the Federal Reserve be ordered to provide the court with an advance copy of the Fed's final interchange regulation, planned for presentation to the Fed Board next week. TCF's court case claims that the Fed's proposed regulation is unconstitutional. TCF estimates a loss of  $80 million per year in debit fees if the final rule is similar to the Fed's December proposal. It's court case claims this amounts to “confiscatory taking” under the commerce clause in the U.S. Constitution.

The unusual request by TCF in the Court of Appeals for the Eighth Circuit orders the Fed to furnish the court with an advance copy of its final rule, with no copy being seen by TCF, in order to help the appeals court decide whether the rule.