DCUC Applauds Seventh Circuit Decision on Illinois Interchange Case
By DCUC Staff —
The Defense Credit Union Council, DCUC, expresses its support of the United States Court of Appeals for the Seventh Circuit decision to remand the Illinois interchange case back to the district court following recent actions by the Office of the Comptroller of the Currency addressing federal preemption of the Illinois Interchange Fee Prohibition Act (IFPA).
“This is a significant and encouraging development for financial institutions, consumers, and the stability of the nation’s payments system,” said Jason Stverak, DCUC Chief Advocacy Officer. “The OCC’s recent actions recognize the serious legal, operational, and economic concerns created by the Illinois law and reinforce the importance of maintaining a consistent national framework for electronic payments.”DCUC has been actively engaged on the issue since 2024, including formally urging the National Credit Union Administration (NCUA) to oppose the Illinois law and support federal preemption protections for credit unions. Most recently, DCUC sent a detailed letter to NCUA Chairman Kyle Hauptman requesting clarity on the agency’s authority to provide similar regulatory guidance and protections for federal credit unions following the OCC’s interim final rule and order.“Credit unions should not face uncertainty or unequal treatment simply because their regulator has not yet acted,” Stverak added. “DCUC believes the NCUA has existing authority under the Federal Credit Union Act and current regulations to evaluate this issue and provide meaningful guidance for federally chartered credit unions.”DCUC has consistently warned that the Illinois law could disrupt the payments system and negatively impact fraud prevention, cybersecurity investments, transaction processing, and the affordable financial services relied upon by military families, veterans, and consumers nationwide.“Today’s decision is an important step forward, but significant questions remain for credit unions,” Stverak says. “DCUC will continue advocating for regulatory clarity, federal consistency, and ultimately full repeal of the Illinois IFPA to help protect consumers and preserve a safe, secure, and reliable payments system.”
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Originally reported by DCUC.