IFPA Litigation Co Plaintiffs on OCC Interim Final Actions Affirming Federal Preemption

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 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.”

About the American Bankers Association
The American Bankers Association is the voice of the nation’s $25.3 trillion banking industry, which is composed of small, regional and large banks that together employ over 2 million people, safeguard $20.1 trillion in deposits and extend $13.5 trillion in loans.

About the Illinois Bankers Association
The Illinois Bankers Association, the voice of Illinois' banking industry, is a full-service trade association dedicated to creating a positive business climate that benefits the entire banking industry and the communities they serve. Founded in 1891, the IBA brings together state and national banks and savings banks employing over 105,000 people in nearly 4,500 offices.

About America's Credit Unions
America’s Credit Unions is the unified voice for not-for-profit credit unions, representing more than 95% of the industry's assets and their more than 144 million members nationwide. America’s Credit Unions provides strong advocacy, resources and services to advance, empower, and protect credit unions and the people and communities they serve. For more information about America’s Credit Unions, visit AmericasCreditUnions.org.

About the Illinois Credit Union League
The Illinois Credit Union League is the primary trade association for more than 200 state and federal credit unions in Illinois. It focuses on providing legislative and regulatory advocacy, compliance assistance and information, and a wide range of educational and training services to those credit unions, who serve about 4.1 million members. More information can be found at www.icul.com.

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About the American Bankers Association

The American Bankers Association is the voice of the nation’s $25.3 trillion banking industry, which is composed of small, regional and large banks that together employ over 2 million people, safeguard $20.1 trillion in deposits and extend $13.5 trillion in loans.

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