IFPA Litigation Co-Plaintiffs on NCUA Interim Final Rule Affirming Federal Preemption

WASHINGTON — The Illinois Bankers Association, Illinois Credit Union League, American Bankers Association and America’s Credit Unions issued the following statement in response to the National Credit Union Administration’s issuance of an interim final rule clarifying federal credit unions’ power to charge non-interest charges and fees, including interchange fees, under the Federal Credit Union Act:

“We welcome the National Credit Union Administration’s action today confirming that federal law preempts the Illinois Interchange Fee Prohibition Act and affirming the longstanding federal authorities that govern credit union activities. This interim final rule, along with the OCC’s recent actions and last week’s district court ruling, provides important clarity that federal law governs these activities, which helps prevent a patchwork of conflicting state requirements that would create unnecessary disruption for consumers and the payments system.

“The NCUA’s rule also strengthens the legal foundation in our ongoing litigation challenging IFPA and underscores that the law should not be implemented for any type of financial institution. A definitive resolution to the case reaffirming federal preemption for all banks and credit unions, or the law's repeal by the Illinois General Assembly, is critical to ensuring consistency, stability and continued confidence in the national payments system.”

About the American Bankers Association
The American Bankers Association is the voice of the nation’s $26.1 trillion banking industry, which is composed of small, regional and large banks that together employ over 2 million people, safeguard $20.5 trillion in deposits and extend $13.7 trillion in loans.

About the Illinois Bankers Association
The Illinois Bankers Association, the voice of Illinois' banking industry, is a full-service trade association dedicated to creating a positive business climate that benefits the entire banking industry and the communities they serve. Founded in 1891, the IBA brings together state and national banks and savings banks employing over 105,000 people in nearly 4,500 offices.

About America's Credit Unions
America’s Credit Unions is the unified voice for not-for-profit credit unions, representing more than 96% of the industry's assets and their more than 146 million members nationwide. America’s Credit Unions provides strong advocacy, resources and services to advance, empower, and protect credit unions and the people and communities they serve. For more information about America’s Credit Unions, visit AmericasCreditUnions.org.

About the Illinois Credit Union League
The Illinois Credit Union League is the primary trade association for more than 200 state and federal credit unions in Illinois. It focuses on providing legislative and regulatory advocacy, compliance assistance and information, and a wide range of educational and training services to those credit unions, who serve about 4.1 million members. More information can be found at www.icul.com.

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About the American Bankers Association

The American Bankers Association is the voice of the nation’s $26.1 trillion banking industry, which is composed of small, regional and large banks that together employ over 2 million people, safeguard $20.5 trillion in deposits and extend $13.7 trillion in loans.

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