OCC issues final actions to confirm federal preemption in Illinois

​Statement from America's Credit Unions President/CEO Scott Simpson:
“We appreciate the OCC formally clarifying federal preemption to protect financial institutions and consumers from the harmful effects of this misguided Illinois law. With the clarity that states cannot interfere with national bank powers, Americans are also protected from other efforts that would undermine the safety and stability of the payments system. Based on the Federal Credit Union Act and credit unions' status as federal instrumentalities, federal credit unions should also be preempted from the IFPA and any other state law that encroaches against these national authorities. We are confident the NCUA will continue its leadership to provide similar clarification for credit unions and their millions of members."
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​- Scott Simpson, America's Credit Unions President/CEOJoint Statement from IFPA Litigation Co-Plaintiffs:

The Illinois Bankers Association, Illinois Credit Union League, American Bankers Association and America's Credit Unions issued the following joint statement in response to the OCC's issuance of two interim final actions affirming that federal law preempts the Illinois Interchange Fee Prohibition Act (IFPA) and confirming the agency’s legal authorities:

“We welcome the Office of the Comptroller of the Currency’s interim final actions confirming both preemption of the Illinois Interchange Fee Prohibition Act by federal law and national banks’ federal powers. The OCC’s actions make it clear that states cannot interfere with national bank powers that President Lincoln and Congress placed firmly under federal authority more than 160 years ago and remain essential to the effective functioning of our banking system.

“These actions are consistent with the OCC’s prior amicus filings in this case and with the agency’s public commitment – both in this administration and the previous one – to defend federal preemption. They reinforce the firm legal foundation of our ongoing appeal and underscore that Illinois’ misguided law is unlawful and should not be implemented. The OCC’s actions should also send a strong signal to other states to follow the law and not repeat Illinois' mistake.

“We appreciate the OCC’s clear affirmation that federal law must govern national banking activities. We encourage the NCUA to follow the OCC's lead and similarly defend federal credit union laws to ensure that IFPA is halted for all financial institutions and that a consistent national framework is preserved going forward.”

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