WASHINGTON–The Supreme Court has denied an appeal by the American Bankers Association (ABA) seeking to void membership rules NCUA first approved in December of 2016. The agency said it will immediately move to process applications affected by the ruling.
As CUToday.info reported here, in late 2019 the U.S. District Court of Appeals for the D.C. Circuit denied a request by the American Bankers Association for a rehearing en banc in its long-running case against NCUA. In August 2019, the D.C. Circuit Court of Appeals overturned the previous opinion by U.S. District Court for the District of Columbia, thereby allowing credit unions to serve Combined Statistical Areas of up to 2.5 million people and rural districts with up to one million people.
In March 2018, the U.S. District Court for the District of Columbia had upheld two challenged portions of NCUA's FOM rule and struck down two provisions in a lawsuit filed against the agency by the ABA. The NCUA appealed the decision in May of 2018 and ABA cross-appealed in June of the same year.
The NCUA board approved tweaks to its expanded field of membership rules in response to the courts.
The Supreme Court decision marks the conclusion of the American Bankers Association v. National Credit Union Administration.
CUNA Response
Today is a great day for anyone hoping to access the financial well-being afforded by credit unions,” said CUNA President/CEO Jim Nussle. “In denying the bankers’ lawsuit, the Court has established credit unions’ mission and structure as part the fabric of America. In recognizing the NCUA’s right to oversee our system, the Court has also established a much-needed firewall from spurious attacks by the bankers. CUNA looks forward to working with the NCUA and credit unions to find new opportunities to expand people-over-profit financial services to communities across the country, and thanks the Court for today’s decision.”
CUNA Mutual Response
“This is fantastic, and we applaud the Supreme Court for correctly rejecting the bankers’ appeal,” said Robert N. Trunzo, CUNA Mutual Group president & CEO. “This is a great win for credit unions and consumers during what could possibly be the most challenging period our nation and world have faced. As we continue to navigate through this extraordinarily difficult time, the Court’s decision will ensure people have continued access to vital credit union services as they seek to build a brighter financial future."
NAFCU Response
“The Supreme Court’s decision to decline to hear the banker’s case is an indication that the case is and has always been a baseless one,” said NAFCU President and CEO Dan Berger. “For years, bank lobbyists have been unrelenting in their hollow efforts to maximize their own profits by working to undermine credit union growth and the financial well-being of America’s communities and small businesses. NAFCU stands firmly in support of the NCUA's field of membership rule. It is well within the agency’s legal authority and works in favor of consumers, especially those that are underserved.”
NCUA Response
NCUA Chairman Rodney E. Hood issued a statement saying, "Today’s decision by the Supreme Court ends nearly four years of uncertainty and will help the NCUA in its efforts to foster greater financial inclusion for all Americans. The NCUA will begin processing field-of-membership applications affected by this decision immediately.”