Removing Barriers Blog

Court Schedules FOM Summary Judgment Hearing for March 14
Posted March 05, 2018 by Chandler Schuette

The United States District Court for the District of Columbia has scheduled a hearing on the summary judgment motions in the lawsuit that the American Bankers Association (ABA) filed against the National Credit Administration (NCUA) on March 14. The ABA filed the lawsuit alleging that some parts of the most recent final field of membership (FOM) rule overstep the provision in the Federal Credit Union Act.

NCUA finalized its rule in October 2016, which provides more flexibility in the definition of communities, facilitates consumer and small business access to credit unions and makes it easier for credit unions to serve their members. The American Bankers Association filed its lawsuit in December 2016. NCUA filed a motion to dismiss in March and CUNA filed a joint amicus brief with NAFCU and CUNA Mutual supporting NCUA in June.  

The ABA has a long history of litigating FOM issues against the NCUA as they try to restrict Americans’ access to credit unions. This lawsuit comes on the heels of the Independent Community Bankers of America (ICBA) suing the NCUA over the most recent member business lending rule. The ICBA’s lawsuit was dismissed when the Eastern District Court of Virginia granted the NCUA's motion to dismiss in a stinging opinion that upheld NCUA’s authority to interpret the Federal Credit Union Act.  The ICBA did not appeal the judge’s decision.