MAR 12, 2025
Court Issues Second Ruling on Illinois Credit Card Fee Capping Law: Out-of-State Banks Exempt, Credit Unions Not So Lucky
As promised, a second Order issued by the Judge in this case determines whether an Illinois state law restricting credit card fees and use of transaction data is preempted by the Federal Credit Union Act ("FCUA") and 12 U.S.C. Section 1831a(j) which regulate credit unions and out-of-state banks. The Court had already issued an Order in the case on December 20, 2024, that the National Banking Act preempts the Illinois law, however nothing preempts major card networks, like Visa and Mastercard, from compliance with the law.