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Continued: Judge scolds Fed for its inaction on credit card swipe fees

  • Article by: JIM SPENCER , Star Tribune
  • Last update: August 14, 2013 - 9:27 PM

But Leon has asked lawyers from both sides of the case to come up with ways to make financial services companies reimburse businesses for what he calls “overcharges.” That would be the difference between what the Fed’s swipe fee limits have been since Oct. 1, 2011, and what they should have been based on the reform law’s requirement that swipe fees be “reasonable and proportional to the cost incurred by the issuer.”

The amount could be billions of dollars. In court, a lawyer for a coalition of financial services groups told Leon that his clients will fight any such payback.

Banks and other financial companies were not parties in the suit, attorney Seth Waxman said, and there were no requests for damages. “There is no basis in law,” he said, to order reimbursement.

Jim Spencer • 202-383-6123

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