Illinois Court Extends Preemption of IFPA to Federal Credit Unions

In an important September 22 decision , the U.S. District Court for the Northern District of Illinois expanded its prior rulings concerning the Illinois Interchange Fee Prohibition Act (“IFPA”) to federal credit unions. The court granted the Illinois Bankers Association’s motion for partial reconsideration and held that the IFPA’s limitation on interchange fees (Interchange Fee Limitation) charged on the tax and gratuities portions of payment card transactions is preempted under the Federal Credit Union Act (FCUA) as applied to federal credit unions….