DOJ Endorses Interchange Rule that Credit Unions Hate

A fight is brewing between the Biden Administration and credit union trade groups over a Federal Reserve proposal to require financial institutions to give merchants a choice of debit card networks for online transactions and other purchases when consumers do not physically present their debit cards.

The Justice Department this week threw its support behind the Fed’s proposed rule, saying it would enhance competition and save consumers money. Credit union trade groups, on the other hand, said that the proposal would increase compliance costs, while not passing any savings on to consumers.

Harper Nomination: Unprecedented. But is It Illegal?

President Biden’s decision to renominate National Credit Union Administration Chairman Todd Harper for a full term on the agency board is unprecedented, several sources in the credit union community said Monday.

Four sources said that Harper’s nomination is not only unprecedented, but that under past interpretations of the Credit Union Act, it might be considered illegal.

FinCEN to Develop ‘No Action Letter’ Program

The Financial Crimes Enforcement Network intends to develop a program that allows it to issue “no action letters” to financial institutions that request them, agency officials said recently.

Under such a program, a financial institution may submit details of an activity for evaluation by a federal regulator. If a “no action letter” is released, the regulator states that it will not sanction the institution for the activities.