U.S. Supreme Court denies ABA appeal on FOM rule, marks victory for credit unions industry

June 29, 2020

June 29, 2020
Washington, DC


U.S. Supreme Court denies ABA appeal on FOM rule, marks victory for credit unions industry

The Supreme Court of the United States  today denied an appeal from the American Bankers Association (ABA) to void the National Credit Union Administration’s (NCUA) field of membership (FOM) rule.

This decision marks the conclusion of the American Bankers Association v. National Credit Union Administration case which dates back to December 2016 when the bankers’ trade filed a lawsuit challenging the credit union regulator’s revision to its FOM rule.

Credit Union National Association (CUNA), CUNA Mutual Group, and the National Association of Federally-Insured Credit Unions (NAFCU) have long supported the rule and the NCUA’s authority to provide oversight for the credit union industry, and issued the following statements of support for today’s decision.

“Today is a great day for anyone hoping to access the financial well-being afforded by credit unions,” said CUNA President/CEO Jim Nussle. In denying the bankers’ lawsuit, the Court has established credit unions’ mission and structure as part the fabric of America. In recognizing the NCUA’s right to oversee our system, the Court has also established a much-needed firewall from spurious attacks by the bankers. CUNA looks forward to working with the NCUA and credit unions to find new opportunities to expand people-over-profit financial services to communities across the country, and thanks the Court for today’s decision.”

“The Supreme Court’s decision to decline to hear the banker’s case is an indication that the case is and has always been a baseless one,” said NAFCU President and CEO Dan Berger. “For years, bank lobbyists have been unrelenting in their hollow efforts to maximize their own profits by working to undermine credit union growth and the financial well-being of America’s communities and small businesses. NAFCU stands firmly in support of the NCUA's field of membership rule. It is well within the agency’s legal authority and works in favor of consumers, especially those that are underserved.”

“This is fantastic, and we applaud the Supreme Court for correctly rejecting the bankers’ appeal,” said Robert N. Trunzo, CUNA Mutual Group president & CEO. “This is a great win for credit unions and consumers during what could possibly be the most challenging period our nation and world have faced. As we continue to navigate through this extraordinarily difficult time, the Court’s decision will ensure people have continued access to vital credit union services as they seek to build a brighter financial future."

In August 2019, the D.C. Circuit Court of Appeals overturned the previous opinion by the U.S. District Court for the District of Columbia, thereby allowing credit unions to serve Combined Statistical Areas of up to 2.5 million people and rural districts with up to one million people.

Lauren Williams 
CUNA Communications

Bobby Grant
NAFCU Communications

Philip Tschudy
CUNA Mutual Group Communications



About CUNA:           
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 115 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit To find your nearest credit union, visit