Sunday, October 24, 2021

State associations, ICBA file amicus brief in credit union field of membership case

State bankers associations from all 50 states and Puerto Rico, along with the Independent Community Bankers of America and 25 of its state-level affiliates, joined with the ABA by filing an amicus curiae brief Friday supporting ABA’s legal challenge to the National Credit Union Administration’s field of membership rule.

The challenged rule is an effort to further expand the already loose fields of membership from which federal credit unions can draw their customers.

Last year, ABA filed a cross-appeal in the case specifically challenging a portion of a decision in the U.S. District Court for the District of Columbia upholding provisions of the rule that permits credit unions to serve core-based statistical areas without serving the urban core that defines the areas.

The associations argued the final rule is “unreasonable, arbitrary and capricious and exceeds NCUA’s statutory authority.” The appellants asked that the district court’s decision on core-based statistical areas be vacated.

The final rule is simply further effort by NCUA to expand the competitive advantages of community credit unions,” we wrote. “In doing so, NCUA has adopted definitions of ‘well-defined local community” and ‘rural district’ that are certainly not ‘local.’