Merchants File Legal Brief in Support of Durbin Amendment

MPC files an amicus brief arguing that TCF's lawsuit has no merit.

March 08, 2011

WASHINGTON - The Merchants Payments Coalition, of which NACS is a founding member, filed an amicus brief on March 4, telling the court that TCF National Bank??s lawsuit challenging the constitutionality of the Durbin Amendment "should be denied."

TCF, a subsidiary of TCF Financial Corporation, filed a lawsuit in October 2010 challenging the legality of the Durbin amendment.

Sen. Richard Durbin (D-IL) immediately responded to the suit, saying, "TCF??s complaint not only fundamentally misunderstands the law regarding interchange fees, but it also ignores the facts."

In advance of the preliminary injunction, scheduled for April 4 in Sioux Falls, S.D., the MPC filed the brief in support of Durbin??s position. "While we believe there is no merit to the TCF case, we must respond so the court understands the merchant position on the Durbin amendment. A bad ruling from the court would be a disaster for our efforts," said NACS Senior Vice President of Government Relations Lyle Beckwith.

"TCF??s due process challenge must fail unless the Durbin Amendment??s interchange fee regulation is arbitrary, discriminatory or irrelevant to a policy that the legislature is free to adopt ?" none of which TCF has established here," the brief noted. "TCF??s due process challenge must fail unless the Durbin Amendment??s interchange fee regulation is arbitrary, discriminatory or irrelevant to a policy that the legislature is free to adopt ?" none of which TCF has established here."

NACS members take to the Hill for our own meetings with Congress this Thursday and Friday. Retailers will deliver the message that debit reform is necessary to fix a broken marketplace that operates without competition. We will debunk the myths that banks are telling...but we need your help. To support all of our efforts next week we need every retailer to send e-mails, letters and faxes to their member of Congress. Go to nacsonline.com/grassroots to send the "Support Swipe Fee Reform" letter to your representative.

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