The Illinois Attorney General’s Office plans to appeal a court injunction preventing the state from enforcing the Illinois Fee Prohibition Act against certain financial institutions, according to a court filing.
The IFPA bans banks, payment networks and other entities from charging or receiving interchange fees in Illinois on the portion of a debit or credit card transaction attributable to tax or gratuity. A lawsuit against the IFPA was brought by the Illinois Bankers Association, American Bankers Association and other trade groups.
In June, District Judge Virginia Kendall issued a permanent injunction preventing the law from being enforced against national banks, federal savings associations, out-of-state state-chartered banks protected by federal law, and payment card networks. She recently expanded the injunction to include federal credit unions.
In a new filing, Illinois Attorney General Kwane Raoul said his office will seek to have the injunction reversed. ABA and the other plaintiffs filed a cross-appeal in response.
