ABA aims to distort credit union mission, says CUNA

WASHINGTON (1/20/06)—The Credit Union National Association (CUNA) criticized bankers Thursday for their attempts to put words into the mouths of federal regulators and for misstating the law.

The American Bankers Association (ABA) issued a statement after a National Credit Union Administration (NCUA) open board meeting in which the agency proposed changes to its field-of-membership rules. (See related story: "NCUA seeks comment on FOM rules.")

American Bankers Association Senior Economist Keith Leggett (left) and Attorney Greg Taylor follow the proceedings at yesterday's NCUA board meeting. (Photo provided by CUNA)

ABA President/CEO Edward Yingling said, "ABA and NCUA agree on one thing: the mission of credit unions is to serve people of modest means."

"The ABA is putting words in NCUA's mouth and, worse, is misstating the law," said Eric Richard, CUNA's general counsel. "The statute says that our mission is to serve ALL Americans, not just those of modest means.

"If the ABA's position were based on principle, rather than the desire to force consumers out of credit unions and into banks, it would not be throwing obstacles in the path of credit unions that make special efforts to serve people of modest means."

The bankers' statement said the group is "gratified" that its recent lawsuit filed against the NCUA for approval of field-of-membership expansions into low-income areas has "pressed NCUA to take steps to correct its flawed rule."

CUNA's Richard noted: "The ABA continues to say in one breath that credit unions should serve people of modest means, and to claim credit in its next breath for throwing obstacles in the path for credit unions seeking to do just that.

"The only logical conclusion is that the ABA's position is not based on principle, but rather on its self-serving goal of preventing consumers from getting better service at credit unions."

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