The Federal Reserve focused its latest Consumer Compliance Outlook on fraud, shining a light on a significant issue impacting consumers and financial institutions alike. The issue details a surge in check fraud and mail-related scams, emphasizing that traditional payment methods remain highly vulnerable, and encourages banks to strengthen fraud prevention efforts and increase consumer education initiatives. As further exemplified by the banking agencies’ recent joint …
District Court Vacates Regulation II’s Debit Card Interchange Fee Standard
A federal district court recently vacated the Federal Reserve Board’s Regulation II, which includes a cap on the fees that bank issuers may charge merchants for processing debit transactions. The court concluded that the rule is contrary to law and the Federal Reserve exceeded its statutory authority under the Durbin Amendment. The vacatur is currently stayed pending an anticipated appeal to the US Court of …