The ABA challenged the legality of the rules and asked the court to impose a preliminary injunction barring the NCUA from approving membership expansions until the case is decided on the merits. The judge found that the NCUA's interpretation of the new legislative authority is a reasonable interpretation of last year's law. Further, Judge Kollar-Kotelly found nothing sufficient to support a preliminary injunction. Concluding that the ABA is unlikely to succeed on the merits of most of its claims, the court denied the preliminary injunction. In summary, the strength of Judge Kollar-Kotelly's ruling indicates it is highly unlikely that the US courts will support additional challenges to the credit union membership rules promulgated by the Credit Union Membership Access Act.
Credit unions provide a great service to our communities.
Many people, like me, use credit unions regularly. The financial services industry is changing rapidly, however, and competition is increasing between banks and credit unions for customer loyalty and deposits. This law ensures that the principles of fairness and the needs of the consumer are top priorities. I am extremely pleased that the US District Court agrees.