Removing Barriers Blog

U.S. Supreme Court denies ABA appeal on FOM rule, marks victory for credit unions industry
Posted June 29, 2020 by dyi

The Supreme Court of the United States  today denied an appeal from the American Bankers Association (ABA) to void the National Credit Union Administration’s (NCUA) field of membership (FOM) rule.

This decision marks the conclusion of the American Bankers Association v. National Credit Union Administration case which dates back to December 2016 when the bankers’ trade filed a lawsuit challenging the credit union regulator’s revision to its FOM rule.

“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.”

In August 2019, the D.C. Circuit Court of Appeals overturned the previous opinion by the 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.