April 4, 2000

Contact:
Mark Wolff

Steve Bosack
(202) 682-4200

WASHINGTON, D.C.--In a ruling that will benefit potential credit union members nationwide, the U.S. District Court for the District of Columbia has dismissed the American Bankers Association's attempts to block consumers from joining credit unions.

In a 35-page ruling released Monday, Judge Colleen Kollar-Kotelly upheld the National Credit Union Administration's interpretations of the Credit Union Membership Access Act, which has allowed more than 1.5 million Americans to join a credit union since the law was implemented in early 1999.

The ruling means credit unions can continue to accept new members from employee groups, community groups, and associational groups—including churches, fraternal organizations, and many others. Extended family of potential members are also eligible to join.

And in a reversal of the judge's preliminary decision, credit unions can also enter into voluntary mergers. This will allow different membership groups to combine into a single credit union to help diversify and strengthen the institution. The judge cited the Credit Union National Association's argument on that issue as a convincing factor.

"The new ruling is essentially a clean sweep for credit unions," noted CUNA President & CEO Dan Mica. "Hopefully this strong pro-credit union decision will put an end to the bankers' attempts to disrupt and distract us from the business of providing consumers with non-profit financial services."

CUNA is now calling for bankers to end their 10-year legal battle against credit unions. While the banking industry has filed 20 lawsuits against credit unions since 1990, Monday's decision struck down the sole remaining case.

"In the past, the credit union movement has attempted in numerous ways to extend an olive branch to the banking industry," Mica pointed out. "Now, with this ruling on our side, we again appeal to the bankers to put an end to this ongoing cycle of legal harassment. We ask them to join us and the nation's 80 million credit union members to support legislation and regulation that will allow all financial institutions to deliver services more efficiently and effectively."

With a network of credit union leagues in all 50 states, CUNA serves more than 90% of America’s 11,000 credit unions. Credit unions are not-for-profit cooperatives where people are worth more than money.