The national credit union trade associations are continuing their joint push in support of the National Credit Union Administration’s new field of membership rule.
The Credit Union National Association, the National Association of Federally-Insured Credit Unions and CUNA Mutual Group have together filed an amicus brief in the U.S. District Court for the District of Columbia supporting the NCUA’s cross-motion for summary judgment against a lawsuit filed by the American Bankers Association challenging the field of membership rule.
The banker association is challenging the NCUA’s interpretation of the Federal Credit Union Act as it relates to requirements for community-based credit unions, as amended by the 1998 Credit Union membership Access Act. In the brief, the three groups say the NCUA’s rule is entitled to deference and furthers Congress’ original purpose in enacting the Credit Union Membership Access Act as a way to grow and strengthen the credit union movement.
“The National Credit Union Administration is well within its authority to interpret the Federal Credit Union Act,” Jim Nussle, CUNA's president and chief executive, said in a statement. “Changes to the NCUA’s field of membership policy have evolved as the industry and needs of consumers have evolved, and we will continue to vigorously defend credit unions’ ability to best serve their members.”
Similarly, Robert N. Trunzo, president and CEO of CUNA Mutual Group, noted the role credit unions have played in helping American consumers build financial security.
“Over the years, we have stood proudly to defend and promote credit unions' fields of membership, such as with the Credit Union Campaign for Consumer Choice, and we’re pleased to join forces with CUNA and NAFCU to file this brief in support of the rule,” he said.
NAFCU President and CEO Dan Berger called the NCUA’s interpretation of the Federal Credit Union Act “a reasonable one,” adding, "NAFCU believes that all credit unions, as not-for-profit, cooperative financial institutions, should be able to grow and adapt to the needs of their member-owners."
The full amicus brief can be read
While the trade groups generally work along parallel tracks, they don’t always work together, and partnerships such as this are still fairly uncommon. When the two joined forces last fall — in the wake of a lawsuit from the Independent Community Bankers of America challenging the NCUA’s latest member business lending rule — it was the
