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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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ANNUAL FED WEBINAR ON REGS, GUIDANCE updated 11/21/14 10:32 AM
Also, FinCEN Issues Advisories
Senior staff at the Federal Reserve will host an annual webinar to provide a recap of recent regulatory changes and highlight various inter-agency guidance. The webinar will also discuss current hot topics in the financial services industry and give a glimpse of future regulatory changes.

DIANA DYKSTRA RECEIVES 'EAGLE AWARD' updated 11/20/14 10:41 AM
Outstanding Record of Achievement
Diana Dykstra, president and CEO of the California and Nevada Credit Union Leagues, was presented with the American Association of Credit Union Leagues’ highest honor—the Eagle Award—this week during AACUL’s winter meeting in Hawaii.

LEAGUE SURVEY EXTENDED TO NOV. 21 updated 11/19/14 10:57 AM
Overdraft and Courtesy Pay
The deadline for the California and Nevada Credit Union Leagues’ survey to obtain information about credit unions’ overdraft and courtesy-pay programs has been extended to Nov. 21.

CUs RECEIVE UNRIVALED SURVEY SCORE updated 11/18/14 11:10 AM
Ranked First in 'Customer Satisfaction'
Credit unions are ranked first in customer satisfaction, significantly outpacing all other financial services, according to findings released Tuesday by the American Customer Satisfaction Index (ACSI).