Action needed: Comment in support of IFPA preemption
Credit unions are asked to file comments in support of the NCUA’s interim final rule confirming federal preemption of the Illinois Interchange Fee Prohibition Act (IFPA) and America’s Credit Unions distributed a call to comment directly to members Monday, urging them to weigh in.
The IFPA would prohibit collection of interchange from tax/gratuity portions of card transactions in Illinois. NCUA’s interim final rule explicitly states that federal credit unions may charge non-interest charges and fees, and that state law limiting those charges are preempted.
The IFPA is scheduled to go into effect on July 1, 2027, following the Illinois General Assembly's passage of a one-year extension of its effective date. America’s Credit Unions and the Illinois Credit Union League are challenging the law in court and recently made a sent notice to the court noting NCUA’s actions.
Although both NCUA and the Office of the Comptroller of the Currency have now published rules confirming federal preemption, the court will ultimately determine how much deference to give those rules.
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