Borrowers who claim they were fraudulently lent money by the now failed Huron River Area Credit Union have sued NCUA in an attempt to stop the agency from collecting on the allegedly fraudulent loans.

NCUA took over the credit union in February 2007 and finally liquidated it in November 2007.

The twenty-eight borrowers, from nine states, argued that the loans they were fraudulently sold were fraudulent many times over. Because they lived outside Huron River's field of membership, the borrowers said they were never eligible to have become members of Huron River and thus borrowers from the credit union. Further, they did not know they were being made members of Huron River and never claimed, as the construction company and credit union had, that they were buying homes as anything other than investment properties.