Credit card fee suit will stand
A South Dakota judge recently ruled that a lawsuit filed over an aspect of laws designed to help consumers avoid credit card debt would be allowed to move forward.
TCF National Bank’s suit against the Federal Reserve’s proposed debit card swipe fee regulation, filed in an attempt to block the rule from being enacted, has been ruled admissible, according to a report from Bloomberg News. However, the judge in the case also rejected the bank’s request to stop the regulations completely. Instead, the case will move forward while Congress weighs whether to change the proposed rule.
TCF argues that the new rule will cost it about $6 million per month, the report said. Currently, the bank makes about $8 million a month on these debit card transaction fees.
“We can’t recover it from the government, and we can’t recover it from the retailers,” TCF National Bank lawyer Timothy Kelly told the judge, according to the news source.
The proposed rule would limit debit card transaction fees to just 12 cents per transaction, down from the national average of 44 cents.