Congress never intended to place severe restrictions on credit union fields-of-membership and instead gave the NCUA the discretion to define the areas a credit union may serve, the agency said this week, in its latest response to a banker lawsuit challenging its new rules.
"If Congress had intended to limit community credit unions to geographic areas of a particular size or with particular population restrictions, it could have said so," the NCUA said, in arguing that a lawsuit filed by the American Bankers Association has no merits.
In October, the NCUA board approved rules that board members said would provide credit unions with more flexibility to determine their fields of membership. Then-board Chairman Rick Metsger said the rules would make it easier for people to gain access to affordable financial services.
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