Credit unions did not receive injunctive relief in an opinion and order issued Friday by the Illinois federal court hearing the challenge against the Illinois Interchange Fee Prohibition Act (IFPA). U.S. District Judge Virginia Kendall granted the injunction for banks and savings associations, but requested more information related to the Federal Credit Union Act. America’s Credit Unions is working diligently to respond to the questions raised by the court and ensure credit unions ultimately obtain relief from this misguided law.

America’s Credit Unions, the Illinois Credit Union League, American Bankers Association, and Illinois Bankers Association, in a statement after the ruling, said “the injunction means that many Illinois consumers will be spared the chaos this law threatens to inflict on our modern payments system until the case can be heard, and that the court recognizes our 'demonstrated likelihood of success' on the merits of our National Bank Act claims. We look forward to answering the judge's questions to ensure that this relief applies to all financial institutions involved in the Illinois payment system, so the customers they serve will also be protected from the harm IFPA will cause if it is allowed to move forward."

The IFPA would ban financial institutions from charging or receiving interchange fees in Illinois on the portion of a debit or credit card transaction attributable to tax or gratuity starting July 1, 2025. America’s Credit Unions is working to provide the judge with additional information in a brief, which is due by Jan. 15. 

America’s Credit Unions and the Illinois Credit Union League challenged the law in August, outlining how the law would throw the payments system into chaos and undermine significant benefits credit and debit cards provide.