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Statement

ABA Applauds Court Ruling on Credit Union Field of Membership Rule

“We welcome today’s U.S. District Court’s decision recognizing that NCUA exceeded its statutory authority in its latest Field of Membership rule. We’re pleased that the judge invalidated two significant portions of the rule, including a provision that declared combined statistical areas with fewer than 2.5 million people to be a local community and another increasing population limits for a rural district to one million people. 
 
“It never made sense that an entire region could be declared a ‘local community’ or that an entire state could be declared a ‘rural district,’ and today’s ruling recognizes that fact.  Today’s decision also affirms what we have known for years – NCUA won’t hesitate to push the boundaries of reason for the credit union industry even at the expense of taxpayers, small banks and the communities those banks serve.  
 
“While we appreciate the judge’s acknowledgement that NCUA overstepped in amending its rule, we’re disappointed in the court’s decision to uphold with faint support NCUA allowing credit unions to avoid serving the urban core of metropolitan areas, and to expand beyond their local communities to serve adjacent areas. This would allow credit unions to cherry pick communities and ignore serving people of modest means, which is fundamental to the original purpose of the credit union tax exemption.

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About the American Bankers Association

The American Bankers Association is the voice of the nation’s $18 trillion banking industry, which is composed of small, regional and large banks. Together, America’s banks employ more than 2 million men and women, safeguard nearly $14 trillion in deposits and extend more than $10 trillion in loans.

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