Credit union advocates are intensifying efforts on multiple fronts to challenge Illinois' Interchange Fee Prohibition Act (IFPA), urging both regulators and federal policymakers to act before the law's July 1 implementation.
In a letter to NCUA Chairman Kyle Hauptman, the Defense Credit Union Council called on the agency to determine whether it has authority to preempt the state law, similar to actions taken by the Office of the Comptroller of the Currency. The group warned that uncertainty around interchange fees, transaction data and payment operations could disrupt services for millions of members, including servicemembers and veterans.
At the same time, Scott Simpson, president/CEO of America's Credit Unions, and SVP of Advocacy Greg Mesack met Thursday with Treasury Deputy Assistant Secretary John Crews to elevate industry concerns.
During the meeting, the group emphasized the need for strong federal preemption authority and outlined their opposition to the IFPA, which would prohibit interchange fees on tax and gratuity portions of transactions. America's Credit Unions and the Illinois Credit Union League have argued in court filings that the law interferes with federal powers, including Treasury-related functions.
Advocates said without federal clarity, the law could increase operational costs and create inconsistencies in the payments system, prompting continued engagement with regulators and lawmakers.
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