Now that the U.S. Supreme Court has refused to overturn the National Credit Union Administration’s Field of Membership rule, the agency will begin implementing the sections of the rule that had been challenged, NCUA Chairman Rodney Hood said Monday.
The U.S Supreme Court on Monday declared the single-director structure of the Consumer Financial Protection Bureau unconstitutional.
The agency’s configuration is “incompatible with the structure of the Constitution, which—with the sole exception of the Presidency—scrupulously avoids concentrating power in the hands of any single individual,” the court said.
The U.S. Supreme Court on Monday refused to consider the American Bankers Association’s challenge to the National Credit Union Administration’s Field of Membership rule.
The refusal is a major win for the agency and credit unions that have defended the rule.
Consumer groups filed suit against the Consumer Federal Protection Bureau Tuesday, asking a federal judge to enjoin the agency from operating its controversial Task Force on Consumer Financial Law.
Bankers Tell Supreme Court That NCUA is Using ‘Extravagant Interpretations’ to Stretch Fields of Membership
The National Credit Union Administration is using “extravagant interpretations” of federal law to allow credit unions to expand their fields of membership far beyond the restrictions imposed by Congress, the American Bankers Association told the U.S. Supreme Court in a brief filed on Tuesday.
Congress has given the National Credit Union Administration wide authority to define credit union fields of membership, the agency told the U.S. Supreme Court Tuesday, challenging arguments made by the nation’s bankers.
The U.S. Supreme Court has given the National Credit Union Administration until May 26 to respond to a petition filed by the American Bankers Association challenging the agency’s Field of Membership rules. The ABA had challenged the rule amended in 2016.