On Friday, the Seventh Circuit Court of Appeals cancelled next week’s oral arguments in our lawsuit challenging the Illinois Interchange Fee Prohibition Act (IFPA).
The appeals court also vacated the earlier district court decision that failed to invalidate the interchange provisions of the law. It remanded the case back to the lower court for further review. Specifically, the Seventh Circuit referenced the OCC’s interim final rule and order preempting the Illinois IFPA.
Below is the IBA’s joint statement with our lawsuit co-plaintiffs on these court actions.
WASHINGTON — 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 U.S. Court of Appeals for the Seventh Circuit’s decision to remand the litigation challenging the Illinois Interchange Fee Prohibition Act to the U.S. District Court for the Northern District of Illinois for further proceedings:
“In light of the Seventh Circuit's order, we welcome the opportunity to resume our legal challenge to the Illinois Interchange Fee Prohibition Act in district court. As we have consistently argued, the Illinois Interchange Fee Prohibition Act conflicts with federal law, and recent regulatory actions only reaffirm that fact.
“The Office of the Comptroller of the Currency’s recent interim final actions directly address the core issues in this case and further strengthen our position that IFPA is preempted by federal law. With the law scheduled to take effect in Illinois on July 1, it is critically important for all parties to recognize the need for a timely resolution to provide certainty for consumers, businesses and financial institutions.
“Even better would be for the Illinois legislature to recognize that IFPA was a mistake and repeal this misguided law, sparing Illinois consumers and businesses from payment chaos and confusion."
Review the Seventh Circuit Court Order.