Reminder: Comments due Thursday on IFPA interim final rule
Credit union stakeholders are encouraged to submit their comments in support of NCUA’s interim final rule confirming federal preemption of the Illinois Interchange Fee Prohibition Act (IFPA) by the Thursday deadline.
Scheduled to go into effect July 1, 2027, the IFPA would prohibit the 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 laws limiting those charges are preempted.
America’s Credit Unions and the Illinois Credit Union League are challenging the law in court and have briefed the court on the rule. The court will ultimately determine how much deference to give to NCUA and the Office of the Comptroller of the Currency’s rules confirming preemption.