VOL. 126 | NO. 66 | Tuesday, April 5, 2011
Judge to Hear Motions in Debit Fee Lawsuit
SIOUX FALLS, S.D. (AP) – A federal judge will hear motions in a bank's lawsuit against the Federal Reserve on the constitutionality of regulations limiting the fees a bank can charge retailers for debit card transactions.
Minnesota-based TCF National Bank, a subsidiary of TCF Financial Corp., is seeking a preliminary injunction Monday to prevent the new regulations from taking effect.
The Fed wants the case thrown out.
TCF National filed the lawsuit against Fed chairman Ben Bernanke and its board of governors in in U.S. District Court in South Dakota in October.
Merchants maintain that the fee charged for debit cards, also called an interchange fee, is too high.
Banks and Visa and MasterCard say the fee takes into account the cost of setting up and maintaining a secure and sophisticated debit payment system.
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