US court allows Fed debit fee rule to go forward

WASHINGTON, June 29 Wed Jun 29, 2011 11:50am EDT

WASHINGTON, June 29 (Reuters) - A U.S. appeals court affirmed a decision that will allow the Federal Reserve to move forward with a rule cracking down on debit card fees.

The U.S. Court of Appeals for the Eighth Circuit affirmed on Wednesday a district court's denial of a motion to block the Fed from issuing a rule limiting the billions of dollars in fees banks charge merchants when a debit card is used.

The motion was sought by the banking unit of TCF Financial Corp (TCB.N), which is arguing the fee crackdown is not constitutional.

The case is TCF National Bank v. Bernanke et al, U.S. District Court, District of South Dakota, No. 10-04149. (Reporting by Dave Clarke, Editing by Tim Dobbyn)

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