The U.S. District Court of the Eastern District of Virginia granted the NCUA’s motion to dismiss an Independent Community Bankers of America (ICBA) lawsuit against the agency and its member business lending (MBL) rule Tuesday. CUNA, along with National Association of Federally Insured Credit Unions (NAFCU), filed an amicus brief in support of dismissal.
“The court made the right decision in granting NCUA’s motion to dismiss ICBA’s groundless lawsuit. We had maintained all along that this was nothing more than a frivolous and ill-conceived effort by the bankers. Today’s decision is a clear message that NCUA acted well within its statutory authority when it issued its member business lending rule. The CUNA/League system and NAFCU applaud today’s ruling because it is a huge win for Main Street businesses which look to credit unions to secure much-needed access to capital,” said Dan Berger, president/CEO of NAFCU, and Jim Nussle, president/CEO of CUNA.
“Perhaps the bankers should put more effort into serving their own customers instead of filing meritless lawsuits that only result in wasted time and money.”
The court dismissed the suit on procedural grounds but also indicated the suit would have been dismissed on the merits as well.
The NCUA finalized its MBL rule last year, eliminating most requirements not present in the Federal Credit Union Act. The ICBA sued the agency in September, and CUNA filed its amicus brief in support of the rule in November.
CUNA strongly supports the MBL rule, which became effective Jan. 1.