Newsroom

NAFCU and CUNA announced Thursday that they are joining forces in their commitment to protect credit unions' interests by challenging a lawsuit recently filed by the Independent Community Bankers of America against NCUA over its member business lending rule.

"With approximately 6,000 credit unions that represent nearly 105 million Americans, NAFCU and the CUNA/League system will take whatever actions are necessary to protect and defend the interests of credit unions and small businesses," said Dan Berger, president/CEO of NAFCU, and Jim Nussle, president/CEO of CUNA. "Our trade associations support the NCUA's member business lending rule, which is consistent with the law and allows small businesses more access to the capital they need."

The trade associations plan to use Williams & Connolly LLP to challenge the suit.

"We are proud to collaborate with CUNA in standing up to the bankers and their bullying tactics," Berger added. "Unfortunately, anyone with $100 and a map to the courthouse can file a frivolous lawsuit."

ICBA announced its lawsuit earlier this month. Berger said the lawsuit raises to a new level the banking trade's campaign of attempted scare tactics and intimidation meant to hinder credit unions' ability to serve small businesses.

NCUA's final MBL rule eliminated credit unions' personal guarantee requirement and, effective Jan. 1, 2017, will eliminate the waiver process. NAFCU praised the rule for easing the regulatory burden on credit unions and allowing them the independence to safely and soundly address the needs of their small-business members.