Banker-CU Wars Returns to State High Court

HARRISBURG, Pa.– The credit union wars with the bankers will be back before the state’s Supreme Court next month when the court will hear the bankers challenge of the two largest community charters ever granted in the Keystone State. In this case, the Pennsylvania Bankers Association and several banks are challenging the 2005 ruling by the Department of Banking granting Freedom CU and TruMark CU a charter encompassing more than three million people surrounding Philadelphia. The state High Court heard a portion of the case–the bankers challenge to the tax exemption for state chartered credit unions–last May, and are now challenging the legality of such broad community charters. The bankers have launched a similar legal challenge in federal court, asking that broad community charters granted by NCUA for Members 1st FCU, New Cumberland FCU and AmeriChoice FCU, be overturned for violating the Federal CU Act’s requirement that such communities must be ‘local’ in nature. Each of those charters cover more than 1.2 million people in seven southeast Pennsylvania communities.