The U.S. District Court for the Northern District of Illinois denied the preliminary injunction for credit unions in the Illinois interchange lawsuit. This decision puts credit unions in an uncertain position in complying with the Illinois Interchange Fee Prohibition Act (IFPA).

America’s Credit Unions Chief Advocacy Officer Carrie Hunt and Illinois Credit Union League SVP Ashley Sharp released a statement on the court decision:

"We are deeply disappointed by today's decision in the Illinois federal court denying relief for credit unions under the Interchange Fee Prohibition Act. Credit unions are left in a state of uncertainty in complying with this misguided law, while federally chartered banks and savings associations and out of state banks received the relief of a preliminary injunction. As the litigation proceeds, we will provide additional clarity to the court regarding preemption under the Federal Credit Union Act so that credit unions are not put at a competitive disadvantage and their members are not harmed by this law. America's Credit Unions and the Illinois Credit Union League will not rest until credit unions also obtain relief and similar proposed bills across the country are invalidated."

The IFPA would ban financial institutions from charging or receiving interchange fees in Illinois on the portion of a debit or credit card transaction attributable to tax or gratuity. The court granted relief from the law to banks and savings associations in a December decision.

America’s Credit Unions, the Illinois Credit Union League, and other organizations filed an additional brief in January explaining why credit unions should also be granted relief.