ICBA suing credit union group

The Independent Community Bankers of America last week filed a lawsuit against the National Credit Union Administration alleging unlawful commercial lending practices.
The Independent Community Bankers of America last week filed a lawsuit against the National Credit Union Administration alleging unlawful commercial lending practices.

WASHINGTON – The Independent Community Bankers of America last week filed a lawsuit against the National Credit Union Administration alleging unlawful commercial lending practices.
The lawsuit stems from a longstanding disagreement between the two entities regarding what an appropriate amount of commercial lending activity should be allowed for credit unions. The NCUA earlier this year extended its lending cap, which the community banks say gives credit unions an unfair advantage because they don’t pay the same taxes as banks.
“The NCUA is attempting to unilaterally expand loopholes for tax-exempt credit unions by sidestepping Congress and putting consumers at risk,” said ICBA president and CEO Camden R. Fine in a statement. “This unlawful rule from the NCUA is the latest example of the agency stretching the law beyond its breaking point to serve as the tax-exempt credit union industry’s regulatory rubber stamp.”
NCUA has a policy not to comment on litigation, according to spokesman John Fairbanks, and has 60 days to respond to the lawsuit.
“NCUA is reviewing the complaint, and the agency will respond,” Fairbanks said.

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