Last fall, TCF National Bank, which is headquartered in South Dakota, filed a lawsuit against the federal government, alleging that regulations that limit the interchange fees whenever consumers use their credit card to make a purchase violate the constitution, according to a report from the upper Midwest news source the Minn Post. However, the U.S. Department of Justice recently asked a South Dakota federal court to throw out the case, causing TCF to file more paperwork.
The new documents say the Justice Department's request is not based on its belief that the regulations are indeed constitutional, the report said. TCF also says the laws are tantamount to price fixing, and limit the fees banks charge to merchants when consumers take on credit card debt to make a purchase.
Most banks say the added restrictions from the government will cost them billions of dollars a year.