The California Credit Union League is suing the govern- ment for not letting institutions in its state add customers who don't share a common bond with their core members.
The trade group charges in its Nov. 5 suit that the National Credit Union Administration lacks the authority to order institutions to stop adding members from groups that are within their fields of membership. It also claims that NCUA deprived credit unions of their rights because it didn't give the industry a chance to comment before issuing its order.
It urged a federal judge in Los Angeles to exempt all occupation-based credit unions in California from NCUA's order.
"We believe we have a responsibility to make sure our credit unions receive due process," said David L. Chatfield, president of the group. "We don't believe that has been the case."
NCUA, under a court order, said Oct. 28 that occupation-based credit unions could no longer add customers from groups within their fields of membership that don't share a common bond with their core members.