National Association of Federal Credit Unions (NAFCU) Senior Vice
President of Government Affairs and General Counsel Carrie Hunt issued
the following statement regarding today's oral arguments before a
three-judge panel of the U.S. Court of Appeals for the District of
Columbia Circuit in the Federal Reserve Board's appeal of a ruling that
the Fed's debit interchange rules are invalid.
"We appreciated the opportunity for credit unions' concerns to be heard
in this critical matter," said Hunt.
The Fed's debit interchange fee cap, 21 cents per ransaction plus 1
cent for anti-fraud costs, applies directly only to debit card issuers
that have more than $10 billion in assets, but market forces are
expected to bring the fees down for all issuers over time.
Judge Leon issued his ruling in July, but the Fed filed for an appeal
and sought a stay while that appeal proceeds; Leon granted that stay.
Leon, in his July ruling, sided with merchants in declaring the Fed's
debit interchange fee cap was too high and that its network
non-exclusivity provisions were inadequate.
The stay was requested by all parties pending the appeal of Leon's July
31 ruling. The stay and current interchange rules will remain in place
until a decision on the appeal is issued.
NAFCU filed with other amici in support of overturning Judge Leon's
The National Association of Federal Credit Unions is the only national
organization that focuses exclusively on federal issues affecting credit
unions, representing its members before the federal government and the
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