Bankers Sue To Block FOMGrant

January 25, 2005, 1:00 a.m. EST 1 Min Read

HARRISBURG, Pa. - (01/25/05) -- The Pennsylvania Bankers Associationfiled suit against the state Department of Banking last Friday andasked the Commonwealth Court to overturn controversial field ofmemberships the state regulator approved for three state charteredcredit unions, including the two broadest ever granted. In itssuit, the bankers claim the three grants violate state statuterequiring that community FOMs be local and of a well-definedcommunity. The three grants include two awarded TruMark CU,Trevose, and Freedom CU, Philadelphia, to serve more than fourmillion in five counties surrounding Philadelphia, including thenation's fourth-largest city. The third FOM being challenged willallow Corry Jamestown CU to serve everyone within a 35-mile radiusof the credit union's Jamestown offices. Representatives of thebankers association would not comment on the matter, citing a gagorder issued during the administrative proceedings after which theFOMs were granted.

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