WASHINGTON–The American Bankers Association has filed a cross-appeal in response to NCUA’s own appeal in a challenge to its field of membership rule.
As CUToday.info reported here, in March the U.S. District Court for the District of Columbia upheld two challenged portions of NCUA’s field of membership rule and struck down two provisions in a lawsuit filed against the agency by the American Bankers Association.
The provisions declared to exceed the NCUA's statutory authority include those that automatically qualify a combined statistical area (CSA) with fewer than 2.5 million people to be a local community and the increase to one million people the population limit for rural districts.
NCUA has since appealed the ruling and now, so has the ABA with its cross appeal. In a cross appeal the respondent or appellee has the right to also request a review of a lower court's decision.
In response to the NCUA move, CUNA CEO Jim Nussle issued a statement saying, “We believe the National Credit Union Administration’s had the authority to issue the field of membership rules in 2016 and support their appeal of the DC District Court’s summary judgment decision that held that part of the rule violated the Federal Credit Union Act. The ABA’s appeal of the decision only continues a long line of tireless attacks against credit unions by banks who make every attempt to limit Americans’ access to credit unions.”
In its statement, CUNA said it also reaffirms the position that the field of membership rule was properly promulgated by the agency and well within their express authority.
“We will continue to support rulemaking efforts to help credit unions provide services to consumers via expanded fields of membership as well,” Nussle said.
NAFCU CEO Dan Berger expressed similar sentiments, saying the association stands behind the NCUA's decision to issue the final rule on FOM.
"As we have said previously, NCUA's field-of-membership rule is well within the agency's legal authority and is in keeping with the Federal Credit Union Act," said Berger. "We stand solidly in support of this rule. This suit, and the ABA's appeal, is just another effort by bankers to distort the truth and stymie credit unions' ability to provide consumers with the choice of a financial institution that puts them first."