ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Uncategorized

U.S. Supreme Court agrees to hear debit card rule challenge

November 1, 2023
Reading Time: 3 mins read
U.S. Supreme Court agrees to hear debit card rule challenge

Regulation II
Corner Post v. Board of Governors of the Federal Reserve System
Date: September 29, 2023

Issue: Did plaintiffs timely file their lawsuit challenging Regulation II within the six-year statute of limitations necessary to survive a motion to dismiss?

Case Summary: The U.S. Supreme Court agreed to examine Corner Post Inc.’s appeal over the timeliness of its lawsuit contesting the Federal Reserve Board’s (Fed) regulation on debit card fees.

The North Dakota Retail Association, North Dakota Petroleum Marketers Association, and Corner Post (the retailers) sued the Fed in a North Dakota federal district court, seeking to invalidate Regulation II’s standard for reasonable and proportional interchange fees. Regulation II capped the interchange fee received by large issuers ($10 billion or more in assets) to 21 cents plus 0.05% of the transaction. It also allowed a one cent adjustment if the issuer implements fraud-prevention standards. In 2014, in National Association of Convenience Stores v. Board of Governors of the Federal Reserve System, the D.C. Circuit reversed a lower court decision determining that Regulation II violated the Administrative Procedure Act (APA). However, the D.C. Circuit remanded the issue of the Fed’s treatment of transactions-monitoring costs, concluding the Fed must provide greater clarification explaining its exercise of discretion. On Aug. 14, 2015, the Fed published the clarification for transactions-monitoring costs in the interchange fee standard (the clarification).

On April 29, 2021, the retailers filed a complaint raising a facial challenge to Regulation II as a violation of the APA that is contrary to law and both arbitrary and capricious. The Fed moved to dismiss based on the statute of limitations. The district court dismissed, finding the clarification did not constitute a final agency action to renew the statute of limitations; the statute of limitations began to run with the publication of Regulation II in 2011; and the retailers’ claims did not warrant equitable tolling.

On appeal, an Eighth Circuit panel affirmed, ruling the claims were barred by the statute of limitations. The panel dismissed the retailers’ argument that the statute of limitations was renewed when the Fed published the clarification in 2015. The panel reasoned the clarification was not a final agency action because it was not the “final consummation of the agency’s decision-making process.” The panel also rejected the retailers’ argument that their facial challenge to Regulation II first accrued when Corner Post opened in 2018, rather than when Regulation II was published in 2011. The panel also ruled the retailers were not entitled to equitable tolling because they had notice of publication of Regulation II in 2011. For these reasons, the panel ruled that the retailers’ facial challenge to Regulation II remains time-barred by the six-year statute of limitations under 28 U.S.C. § 2401(a).

In its certiorari petition, Corner Post made three main arguments. First, Corner Post argued the Eighth Circuit’s opinion “deepens a square, entrenched circuit split about when APA claims accrue.” While the panel determined the limitations period begins upon publication of the regulation, the Sixth Circuit previously held the clock begins when a plaintiff is allegedly injured.

Second, Corner Post argued the majority rule adopted by the Eighth Circuit contradicts Supreme Court precedent. Under the majority rule, Corner Post explained the statute of limitations starts even for plaintiffs who cannot state a claim challenging the agency’s action. However, Corner Post pointed to Supreme Court precedent ruling an APA plaintiff who has not been harmed by agency action cannot “file suit and obtain relief.”

Finally, Corner Post argued the Eighth Circuit’s decision was wrong. According to Corner Post, the majority rule effectively ignores Section 702 of the APA, which provides that “a person suffering a legal wrong because of agency action, or adversely affected or aggrieved by agency action within the meaning of a relevant statute, is entitled to judicial review thereof.” Corner Post argued a plaintiff bringing an APA claim becomes entitled to judicial review and has six years from that date to sue. Corner Post also claimed the majority rule improperly insulates agency actions from APA challenges.

Bottom Line:  Corner Post’s merits brief is due Nov. 13, 2023.

Documents: Petition

ADVERTISEMENT
Tags: Banking Docket
ShareTweetPin

Related Posts

Recent news from Treasury’s Office of Foreign Assets Control: April 5

Recent news from Treasury’s Office of Foreign Assets Control: June 16

Uncategorized
June 16, 2025

The Office of Foreign Assets Control announced the following sanctions action last week.

Recent news from Treasury’s Office of Foreign Assets Control: April 5

Recent news from Treasury’s Office of Foreign Assets Control: June 9

Uncategorized
June 9, 2025

News items that are the most recent sanctions-related actions from the Office of Foreign Assets Control.

Preliminary injunction denied in bid to delay Capital One’s Discover purchase

Preliminary injunction denied in bid to delay Capital One’s Discover purchase

Uncategorized
June 2, 2025

A California federal court denied a group of consumers’ motion for a preliminary injunction seeking to delay Capital One’s impending purchase of Discover.

Third Circuit reverses FCRA lawsuit against Nissan over lease dispute

Third Circuit reverses FCRA lawsuit against Nissan over lease dispute

Uncategorized
June 2, 2025

A unanimous Third Circuit panel reversed a New Jersey federal court decision and ruled that a jury could find Nissan’s credit reporting inaccurate and its investigation unreasonable under the FCRA.

Green Dot agrees to pay Federal Reserve $44 Million to resolve UDAP allegations.

ABA, co-plaintiffs file joint motion with Federal Reserve to stay proceedings in stress test lawsuit

Uncategorized
June 2, 2025

ABA and its co-plaintiffs filed a joint motion with the Fed to stay proceedings in their lawsuit claiming the Fed’s stress testing framework violates the APA.

U.S. Supreme Court vacates Ninth Circuit preemption decision

U.S. Supreme Court clarifies wire fraud liability

Uncategorized
June 2, 2025

In a unanimous decision, the U.S. Supreme Court ruled a defendant may be convicted of federal fraud for inducing a victim to enter into a transaction under materially false pretenses, even if the defendant did not intend to...

NEWSBYTES

Treasury official outlines principles for Bank Secrecy Act modernization

June 18, 2025

Report: Bank merger activity continues at steady pace

June 18, 2025

CFPB proposes ending using civil penalty funds for consumer education, financial literacy

June 18, 2025

SPONSORED CONTENT

AI Compliance and Regulation: What Financial Institutions Need to Know

Unlocking Deposit Growth: How Financial Institutions Can Activate Data for Precision Cross-Sell

June 1, 2025
Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025
Six Payments Trends Driving the Future of Transactions

Six Payments Trends Driving the Future of Transactions

March 15, 2025

PODCASTS

Podcast: Staying close to clients amid tariff-driven volatility

June 18, 2025

Podcast: Old National’s Jim Ryan on the things that really matter

June 12, 2025

Podcast: What bankers need to know about ‘First Amendment audits’

June 5, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.