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Interchange fees are an extremely controversial issue. CBA strongly opposes any government intrusion into the market pricing of interchange fees. The debit and credit card markets are extremely competitive at the card issuer, merchant bank and card network levels. Governmental intrusion into the setting of interchange fees is wholly unwarranted and, like other government intrusion into properly functioning markets, will have undesirable and unintended consequences. CBA believes the ensuing negative effects on consumers of the debit interchange regulation will highlight the harm of governmental price fixing, making it difficult to produce any successful legislative or regulatory efforts that seek to do further harm to interchange rates.
- August 30, 2013CFPB Consumer Advisory Board to Meet The CFPB has announced on its blog that the Consumer Advisory Board will meet on September 18, 2013 in Itta Bena, Mississippi, to discuss “innovate strategies for improving consumer access to credit, information, and financial resources.” Director Cordray is scheduled to give remarks, and the event is open to the public. CFPB Announces Student Debt Report...
- August 23, 2013Fed to Appeal Interchange Excellent News: Wednesday, the Federal Reserve announced it is filing an appeal of the district court’s ruling overturning its debit interchange rate regulation under the Durbin amendment. Both the Fed and the retailers will seek a stay of the district court ruling while the appeal is pending. The Fed does not plan to issue an interim rule during the appeal process and...
- August 23, 2013CFPB Highlights Supervisory Issues On Wednesday, August 21, 2013, the Consumer Financial Protection Bureau (CFPB) issued a press release in connection with Supervisory Highlights for August. Issues cited in the release include bank and nonbank mortgage servicing, detailing problems with account transfers, poor payment processing and servicers’ loss mitigation processes. Most notably, the CFPB...
- August 21, 2013August 21, 2013Washington, D.C. (August 21, 2013) – Today Richard Hunt, President and CEO of the Consumer Bankers Association, released the following statement after a hearing before U.S. District Court Judge Richard Leon in the matter of NACS v. Board of Governors of the Federal Reserve System: “The Fed’s decision to appeal Judge Leon’s ruling is welcome news for consumers. The Judge’s original decision left...August 16, 2013This Week's Court Hearing on Interchange Fees U.S. District Court Judge Richard Leon held a hearing Wednesday to discuss moving forward in the matter of NACS v. Board of Governors of the Federal Reserve System. As noted here before, on July 31, 2013, Judge Leon struck down the Board's current rules on interchange fees for debit card transactions, in place since late 2011. Leon ordered the Board...August 16, 2013Federal Reserve Ordered to Produce Debit Interchange Plan On Wednesday, August 14, 2013, U.S. District Court Judge Richard Leon held a hearing to discuss moving forward in the matter of NACS v. Board of Governors of the Federal Reserve System. As previously reported, on July 31, 2013, Judge Leon struck down the Board's current rules on interchange fees for debit card transactions, in place since...August 2, 2013Interchange Developments News came on Wednesday that a U.S. district court judge struck down the Federal Reserve rule capping interchange fees for debit card transactions, saying the Fed overstepped its authority and set the caps too high. CBA issued the following statement in reaction: "This new ruling will create even more chaos for consumers and small banks. Congress ought to save families...August 2, 2013Federal Court Vacates Fed’s Debit Interchange Rule On Wednesday, July 31, 2013, a U.S. District Court judge struck down the Federal Reserve Board's rules on interchange fees for debit card transactions, in place since late 2011. U.S. District Judge Richard Leon ruled the Board overstepped its discretionary authority to set a 21-cent cap on debit card transactions. The rule, which has been in...July 31, 2013Washington, D.C. (July 31, 2013) – "This new ruling will create even more chaos for consumers and small banks. Congress ought to save families from this uncertainty by repealing this government mandated price-fixing. We certainly hope retailers return to their free-market principles as they did when opposing the proposed government ban on big gulp sodas in New York." About CBA The Consumer...