DCUC Requests Clarification of NCUA Authority on Illinois Interchange Law

Jason Stverak

​Defense Credit Union Council (DCUC) wrote to NCUA Chairman Kyle Hauptman for clarity on whether federal law protects credit unions from the Illinois Interchange Fee Prohibition Act and similar state-level mandates. With the law set to take effect July 1, 2026, DCUC stressed the need for timely guidance to reduce uncertainty around interchange fees, transaction data, and payment operations, especially as federal regulators like the OCC have taken steps asserting preemption authority.
 
“Credit unions need clear, timely guidance to avoid a patchwork of state mandates that could disrupt payments and increase costs for military families,” wrote Jason Stverak, DCUC Chief Advocacy Officer.
 
Stverak recalled the NCUA’s ability under the Federal Credit Union Act to interpret and preempt conflicting state laws and urged the agency to act quickly. DCUC has requested a formal legal review, public guidance, interagency coordination, and an update within 60 days. The uncertainty, DCUC warned, could lead to higher costs, reduced services, and fewer benefits for the nearly 40 million members served by defense credit unions.
 
“Even a clear statement of limits would help credit unions plan, while decisive action could preserve consistency, lower burden, and protect member services,” Stverak says.

For additional comments or questions regarding DCUC's letter, please contact Jason at [email protected].

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