The Office of the Comptroller of the Currency called the credit union-opposed Illinois interchange law “ill-conceived, highly unusual, and largely unworkable” in an amicus brief filed with the U.S. District Court of Northern Illinois this week. The OCC’s filing supports the challenge by America’s Credit Unions, the Illinois Credit Union League, and other organizations against the Illinois Interchange Fee Prohibition Act (IFPA).

The IFPA would ban financial institutions from charging or receiving interchange fees in Illinois on tax or gratuity portions of debit or credit card transactions.

The OCC’s brief urges the judge to stop the Illinois law because federal banking laws preempt the new state restrictions on interchange fees.

America’s Credit Unions released a statement responding to the OCC’s filing, noting that, “In its amicus brief, the OCC identified many of the same problems with the law that we detailed in our preliminary injunction motion. This new state law is bad for consumers and small businesses, and it violates multiple federal laws. We appreciate the OCC spelling that out so clearly.”

In addition to the legal challenges, America’s Credit Unions’ advocacy team met with the NCUA to discuss concerns with this law, which would take effect July 1, 2025.