SPRINGFIELD, Ill.– America’s Credit Unions and the Illinois Credit Union League have joined to produce and place multiple ads appearing in markets across the state in opposition to the Illinois Interchange Fee Prohibition Act.
According to America’s Credit Unions, the ads are “running to combat big retailers’ support of the law and raise awareness of the negative consumer impact.”
As the CU Daily has been reporting, the IFPA would ban the collection of interchange from the tax and gratuity portions of a card transaction. Credit unions maintain that the law would upend the payments system, and that federal law preempts the IFPA.
The ads emphasize that the current payment system works for consumers, small businesses, and local credit unions, while the IFPA would simply be a handout to big retailers, according to America’s Credit Unions.
‘Retail Giants Win—Consumers Lose’
“Interchange restrictions shift the system—but not toward consumers. Retail giants win. Consumers lose fraud protections, reward value, and choice,” one ad states.
As the CU Daily also reported earlier, challenge to the IFPA was remanded to a lower court earlier this month following an order from the Office of the Comptroller of the Currency that federal law preempts the IFPA. America’s Credit Unions said it has called on NCUA to issue a similar statement confirming credit union preemption.
The law is currently scheduled to go into effect July 1.
CEO in TV Spots
As reported earlier, Scott Credit Union CEO Scott Padak has appeared in a new television ad in this state that urges repeal of the Interchange Fee Prohibition Act.
