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UPDATE: FEES, JURISDICTION, WAGES
updated 07/10/14 10:49 AM
Latest Legal News for CUs
In NACS v. Federal Reserve System, Case No. 13-5270 (D.C. Circuit; March 21, 2014), the Court of Appeals for the D.C. Circuit upheld the Federal Reserve’s rules imposing a 21-cent-per-transaction cap (plus an adjustment of 5 basis points of transaction value) on debit-card swipe fees.

It also upheld the Fed’s requirement that at least two networks owned and operated by different companies be able to process transactions on each debit card (12 C.F.R. Part 235). Merchant trade associations challenged the rules, arguing the Fed did not correctly interpret the statute, and the rules did not go far enough.

In reversing the district court’s grant of summary judgment in favor of the merchant groups, the court of appeals determined the Fed’s rules were based upon reasonable constructions of the statute.

The rules arose from the so-called Durbin Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (15 U.S.C. §1693o-2). It amends the Electronic Funds Transfer Act to require that interchange fees are “reasonable and proportional” to issuer costs in connection with the transaction.

It requires the Fed’s board to consider incremental costs incurred by the issuer for its role in the authorization, clearance, or settlement of a debit transaction (“ACS costs”), but not other costs incurred not specific to a particular transaction. It also permits the board to allow for certain fraud prevention costs.

Additionally, the Durbin Amendment requires the Fed to establish standards for determining whether these requirements are met.

The merchant groups argued the Fed was permitted to consider only incremental ACS costs in setting the interchange fee, and the district court agreed. However, the court of appeals concluded the statute provided the Fed with greater discretion. Notwithstanding, it remanded the treatment of transaction monitoring costs back to the Fed to provide further explanation.

Click here to read the entire Legal column within the June/July edition of Credit Union Digest on Page 17, including commentary on questions of federal jurisdiction, as well as the latest California minimum wage requirements.

 
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CELEBRATE 100 MILLION MEMBERSHIPS updated 07/24/14 03:42 PM
National Awareness Campaign
The credit union movement is on pace to reach 100 million memberships this summer. To commemorate this milestone, the Credit Union National Association (CUNA) launched the “100 Million Memberships” campaign, and invites all credit unions to participate.

ECONOMY 'WELL POSITIONED AND READY' updated 07/23/14 02:06 PM
CUs Can Target Growth Areas
As the economy expands throughout the latter half of 2014, credit unions should focus particularly on the largest employment sectors and growth in these areas, according to California and Nevada Credit Union Leagues Chief Economist Dwight Johnston in his latest Credit Union Digest column.

STORY ON CONGRESSMAN ISSA CLARIFIED updated 07/22/14 11:53 AM
'Misrepresents Facts,' Dykstra Says
Some within the credit union industry may have read the recently published Credit Union Times article regarding remarks from Rep. Darrell Issa, R-CA, in relation to the credit union movement.

GIGI HYLAND TALKS PHILOSOPHY AT WCMS updated 07/21/14 04:11 PM
Foundation Leader Addresses Colloquium
The foundational philosophy of credit unions isn’t dead. But keeping true to the movement’s ideology means staying nimble in how it’s executed and harboring an open mind to change.