ABA and several other trade groups yesterday filed a “friend of the court” brief urging Judge Richard Leon not to order the Federal Reserve to issue an interim rule on interchange.
The groups argued that Leon has no legal authority to order the Federal Reserve Board to conduct rulemaking. Even if he did, they said, “a rush to issue a new rule will harm all affected interests, including consumers, and threaten the effective functioning, stability, and security of the electronic debit card payments system.”
Finally, they said, an interim rule would invite further legal challenges from the Fed or issuers who could contest “the confiscatory nature of an interim interchange fee rule.”
Read the brief.