NCUA clarifies federal preemption over credit union card fees after Illinois court ruling
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Table of Contents
The National Credit Union Administration has issued an interim final rule stating that federal law preempts state laws regulating the non-interest charges and fees that federal credit unions charge, including interchange fees. This action is intended to clarify existing authority and ensure uniformity across states.
Why it matters: This rule resolves a regulatory gap identified after an Illinois court limited the scope of existing preemption protections. It ensures that federal credit unions are not subject to varying state fee restrictions on payment card transactions, which could complicate their participation in national card networks like Visa and Mastercard.
Who it affects
- Federal credit unions and their members who use debit or credit cards
This interim final rule was issued by the National Credit Union Administration and published in the Federal Register; readers should consult the full document for legal details before relying on this summary.
Agency: National Credit Union Administration
Source: Federal Register — read the official document