ABA Files Notice in Field of Membership Case after NCUA Approves Expansions

ABA today filed a notice of supplemental authority in its ongoing case challenging the National Credit Union Administration’s final rule to expand credit union fields of membership far beyond the limitations imposed by Congress. The association submitted the notice after the NCUA recently approved several field of membership expansions — exactly the kind of overbroad fields that ABA warned against in its lawsuit.

One such expansion was granted to Utah Community Credit Union, allowing it to serve the entire Salt Lake City-Provo-Orem combined statistical area, a large geographical area of 2.4 million residents, which ABA noted extends far beyond a single “well-defined local community, neighborhood or rural district” established by the Federal Credit Union Act. NCUA has also authorized several expanded rural districts, many of which encompass urban areas and fall just under the 1 million-person limit for credit union service areas to be designated as “rural.”

The case — which has been fully briefed — is currently awaiting a decision from Judge Ketanji Jackson on whether to hold oral arguments.