CHICAGO—A legal effort to add credit unions to the injunction against the Illinois interchange law is underway, America’s Credit Unions reported.
ACU, together with the Illinois Credit Union League, American Bankers Association, and Illinois Bankers Association, have filed a brief with the U.S. District Court for the Northern District of Illinois explaining why credit unions should be included, ACU said.
As CUToday.info reported, the initial injunction to provide relief from the Illinois Interchange Free Prohibition Act (IFPA) was granted for banks and savings associations, but the court requested more information related to the Federal Credit Union Act.
The IFPA was signed into law in June and would ban financial institutions—including credit unions, payment networks and other entities—from charging or receiving interchange fees in Illinois on the portion of a debit or credit card transaction attributable to tax or gratuity.
Together with the Illinois Credit Union League, America’s Credit Unions challenged the law in August. The trade group outlined how the law would throw the payments system into chaos and undermine significant benefits credit and debit cards provide.