Court Blocks Illinois Swipe Fee Law for Federal Credit Unions
Federal credit unions avoid Illinois swipe fee law after court ruling.
In brief
Federal credit unions avoid Illinois swipe fee law after court ruling. U.S. District Court prevents federal credit unions from complying with Illinois' interchange fee law, sparing them from payment fee restrictions. Originally reported by Pymnts.
Court Ruling
U.S. District Court blocked federal credit unions from Illinois swipe fee law.
“The order means that only certain state-chartered institutions, and especially those chartered in illinois, would be forced to comply with the misguided law when it takes effect next july”
Who Challenged
Illinois Bankers Association and credit unions sued to block the law.
Law Delayed
Illinois delayed swipe fee law twice, now set for july 2027.
Why It Matters
Federal credit unions spared from payment fee restrictions.
Plaintiffs' Goal
State lawmakers should repeal law to avoid payment chaos.
“The order means that only certain state-chartered institutions, and especially those chartered in illinois, would be forced to comply with the misguided law when it takes effect next july”
In short
U.S. District Court prevents federal credit unions from complying with Illinois' interchange fee law, sparing them from payment fee restrictions.
