“State legislators elsewhere should note, a patchwork of state interchange mandates is not a policy solution. It is a recipe for confusion, higher costs, less access, fewer protections and ultimately chaos for every consumer and business owner who depends on the payments system underpinning the nation’s economy.”
WASHINGTON, DC — EPC Executive Chairman Richard Hunt today issued the following statement following the National Credit Union Administration (NCUA) interim final rule reaffirming that federal credit unions are exempt from Illinois’ unlawful Interchange Fee Prohibition Act (IFPA). The rule takes effect June 30, and mirrors action taken by the Office of the Comptroller of the Currency (OCC) earlier this spring.
“With the OCC acting in April, a federal court granting a permanent injunction last week, and the NCUA acting today, the message to state legislators is undeniable — a patchwork of state interchange mandates cannot work in a modern, globally integrated payments system.
Each of these actions reflects the same conclusion, the IFPA is legally unworkable, economically damaging, and a threat to the consumers, small businesses, and community financial institutions it claimed to protect. The Illinois legislature must repeal this law. Only full repeal will restore order to the state’s financial marketplace and ensure every hometown bank and credit union can continue serving the families and small businesses that depend on them. Federal regulators should not have to keep stepping in to shield consumers and small businesses from the consequences of a bill that never should have passed.
State legislators elsewhere should note, a patchwork of state interchange mandates is not a policy solution. It is a recipe for confusion, higher costs, less access, fewer protections and ultimately chaos for every consumer and business owner who depends on the payments system underpinning the nation’s economy.”
