March 10, 1999

CONTACT:
Mark Wolff
(202) 218-7745

WASHINGTON, D.C. (Thursday, March 10) – Calling it a victory for consumers, CUNA President and CEO Dan Mica lauded today’s decision by U.S. District Court Judge Colleen Kollar-Kotelly denying the American Bankers Association’s (ABA) request for a preliminary injunction against the National Credit Union Administration’s (NCUA) new chartering rule.

"All along we have felt this case, and particularly this injunction request, have no merit. This was simply an attempt by banks’ to harass credit unions," said CUNA President and CEO Dan Mica. "The ruling today was crystal clear. It is in the public’s best interest to allow credit unions to grow as Congress intended when it passed our bill last year."

"The banks simply did not meet the burden of proof," explained CUNA General Counsel Eric Richard. "The judge could clearly see that the harm credit unions would suffer from an injunction far outweighed any harm the new rules may cause banks."

The ABA filed suit in January against NCUA for its new chartering rule, which was written in response to last year’s enactment of the Credit Union Membership Access Act. ABA claimed the new rule was illegal and went beyond Congressional intent. They requested a preliminary injunction to prevent NCUA from approving charter expansions under the new rule, and declare null and void those approved since the policy took effect January 1.

CUNA filed to intervene in the case in mid-January, along with the National Association of Federal Credit Unions (NAFCU).

With its network of affiliated state credit union leagues, CUNA represents America's 11,500 credit unions -- which in turn are owned by more than 74 million consumers. Credit unions are not-for-profit cooperatives providing affordable financial services to people from all walks of life.