WASHINGTON— America’s Credit Unions said Monday the OCC’s formal move to preempt Illinois’ Interchange Fee Prohibition Act for national banks could have a broader deterrent effect beyond Illinois, potentially discouraging other states from pursuing similar swipe-fee restrictions—at least while the legal fight remains unresolved.
As CUToday.info previously reported, the Office of the Comptroller of the Currency has now formally advanced two interim final actions—an “Order Preempting the Illinois Interchange Fee Prohibition Act” and a related interim final rule on national bank non-interest charges and fees—designed to shield national banks from Illinois’ law ahead of its July 1 effective date. That move, first surfaced through OMB’s regulatory review site, intensified pressure on NCUA to decide whether it will provide similar protection for federal credit unions.
Speaking on a media call Monday, Ann Petros, ACU senior vice president of policy engagement and credit union operations, said the OCC’s action sends “a really powerful” message that could “disincentivize” state legislatures from advancing Illinois-style interchange bills, though she cautioned many states are likely waiting to see how the Seventh Circuit rules before deciding whether to test the boundaries with copycat proposals.
If the appeal breaks against the industry, she suggested, states could again feel emboldened to pursue similar measures.