Recent Ruling Extends IFPA Effective Date by One Year
Earlier this week, the credit union movement received some clarification related to interchange. The Illinois General Assembly has approved a one-year delay of the Illinois Interchange Fee Prohibition Act (IFPA), pushing its effective date from 2026 to July 1, 2027.
The provision was tucked into a broad end-of-session regulatory package (SB 3645) and passed before lawmakers adjourned their spring session early Monday morning. The bill now heads to Gov. JB Pritzker, who is expected to sign it.
This gives credit unions an extra year to comply if the law withstands legal and regulatory challenges, which remain ongoing.
Last week, Cornerstone’s Regulatory Compliance Counsel issued a letter to the Office of the Comptroller of the Currency supporting the federal preemption of the IFPA. See the letter here.
“The effective date extension is a huge win for the credit union movement and highlights our collaborative work on an issue that affects credit unions in every single state,” said Caroline Willard, Cornerstone League president/CEO. “Although some elements regarding IFPA are pending, this development confirms that credit unions’ collective, unified voice is a force to be reckoned with. And that is a big deal.”
For a more comprehensive view of the IFPA ruling, read the following article, which was published in conjunction with Monday’s regulatory alert. For an overview of this week’s federal updates, see the following update as published in this week’s Legislative Reporter newsletter (login required).
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