Credit Card Fee Law Faces Legal Challenges in Illinois Federal Court

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Judge Kendall also rejected Illinois’ argument that the trade groups lack standing to bring their claims. For one, the attorney general does have the authority and the duty to enforce the law, contrary to Raoul’s argument, Judge Kendall said.

“The Illinois attorney general has common law authority to enforce the IFPA, and there is no language in the Interchange Fee Prohibition [that] mandates that an official outside the attorney general’s office is tasked with enforcing it,” she stated.

Raoul also argued that the suit should be dismissed because the Eleventh Amendment immunizes the attorney general. But Judge Kendall said because the groups have established that the attorney general does have the authority to enforce the law, the state isn’t entitled to sovereign immunity, at least with respect to the trade groups’ federal law claims.

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Still, Judge Kendall threw out the groups’ state law claims, finding that the state hasn’t waived its sovereign immunity with respect to those allegations.