January 12, 1999

CONTACT:
Mark Wolff
(202) 682-4200

FOR IMMEDIATE RELEASE

WASHINGTON-The Credit Union National Association is filing today to intervene in the lawsuit the American Bankers Association filed Friday against the National Credit Union Administration. CUNA will file the request with the U.S. District Court for the District of Columbia.

The ABA suit challenges the legality of NCUA regulations that allow credit unions to serve multiple groups. The ABA also is requesting a preliminary injunction that would prevent NCUA from approving future expansions and would declare any previously approved expansions under the new regulations null and void.

"By intervening in this suit we will ensure that credit unions are vigorously and aggressively represented in this litigation," said Dan Mica, CUNA president and CEO.

The NCUA regulations stem from the Credit Union Membership Access Act (H.R. 1151) passed by Congress in August. Bankers vigorously fought the legislation and the suit comes just weeks after NCUA released its new regulations in December.

"By suing yet again, just months after being repudiated by Congress, the bankers have crossed the line between legitimate debate and harassment," Mica added. "The banks' effort to stifle consumer choice has reached a new low."

A dispute over the new rule was expected, and CUNA had begun garnering support from credit unions nationwide.

"We've had a strong response from our board and from credit union leaders throughout the United States," said Mica. "We've been given the authority to look at bank legislation and bank regulation and get involved on behalf of the consumers."

"The bottom line in this entire battle is that consumers would be denied a choice if the banks once again find a way to stop us from growing," Mica added.

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.