CUNA-League System Reaffirms Support for Revised FOM Rule Despite ABA Challenge

The American Bankers Association reportedly filed a lawsuit yesterday seeking to reverse a recent NCUA rulemaking on field of membership aimed at giving more consumers the choice to join a credit union.

The rule has not been updated since Congress passed the Credit Union Membership Modernization Act in 1998.

“The NCUA acted well within its authority when it issued its field of membership rule. This meritless attack from bankers on the NCUA’s rule completely ignores both the law and the NCUA’s authority to regulate credit unions,” said CUNA President/CEO Jim Nussle. “The suit completely lacks worth, and CUNA and its partners will vigorously defend the rule on behalf of credit unions and the consumers that will benefit from the changes.”

“This was a thoughtful, pragmatic process by the NCUA, in producing a rule consistent with the law and utilizing the comment process effectively to bring together stakeholders,” noted NWCUA AVP of Regulatory Advocacy John Trull, when the NCUA Board initially approved the change.

The lawsuit was filed in the United States District Court for the District of Columbia, according to the ABA announcement.

The comment period on a second field of membership proposal by the NCUA remains open until Friday, December 9. Northwest credit unions are encouraged to connect for this important opportunity to influence the evolution of the industry via a very short window.

Questions about this story? Contact Eric Horvath: 503.350.2222, ehorvath@nwcua.org.

Posted in Advocacy News, CUNA, Federal, NCUA, NWCUA.