Removing Barriers Blog

DC Circuit Court of Appeals Considers Field Of Membership Challenge
Posted April 16, 2019 by CUNA Advocacy

Today, CUNA attended oral arguments before a three-judge panel of the D.C. Circuit Court of the in American Bankers Association’s ongoing legal challenge to the National Credit Union Administration’s field of membership (FOM) rule. 

During the hearing, the judges considered NCUA’s appeal of District Judge Dabney Friedrich’s ruling overturning the provisions of the agency’s rule related to combined statistical areas and rural districts. Meanwhile, the Court also considered ABA’s cross-appeal on those portions of Friedrich’s opinion upholding the provision of the rule permitting credit unions to serve core-based statistical areas without serving the urban core that defines the area.

CUNA has continuously supported NCUA’s appeal and further believes the court erred in its finding that the agency overstepped its statutory authority with regard to the combined statistical area approach and the definition of rural district. CUNA President/CEO Jim Nussle previously noted that the “ABA’s appeal of the decision only continues a long line of trite attacks against credit unions by banks who make every attempt to limit Americans’ access to credit unions.”

NCUA finalized its FOM modernization rule in October 2016. The American Bankers Association sued the agency over the rule in December 2016. 

At present, it is unclear when the panel will issue a decision on the appeals.

DC court