In a letter to credit unions on Tuesday, NCUA outlined its plans to reinstate the rural districts for 18 credit unions that had been removed due to the American Bankers Association lawsuit, and cited the decision as an end to “nearly four years of uncertainty” and helping NCUA “foster greater financial inclusion for all Americans.”
As previously reported, in a major victory for credit unions, the U.S. Supreme Court on June 29 denied the appeal by the ABA to review NCUA’s field of membership rules. The Supreme Court’s decision ended the ABA’s case, which dates to December 2016, when the group filed a lawsuit challenging NCUA’s revision to its FOM rule.
The letter states that NCUA’s Office of Credit Union Resources and Expansion will contact affected credit unions by July 10, 2020 to confirm their reinstatement and no that further action is required of the credit unions.
NCUA also said it will resume processing the FOM applications from federal credit unions that were held during the litigation period and that immediately, federal credit unions with rural district community charters are eligible to apply.
The full NCUA letter can be accessed by clicking here.