ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release March 28, 2006 #06-15
E-mail: [email protected]

ACB CALLS ON NCUA TO CLARIFY, MODIFY CREDIT UNION EXPANSION PROPOSAL

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WASHINGTON, D.C. — America’s Community Bankers called on the National Credit Union Administration today to clarify and modify a proposal on credit union expansion into underserved areas.

The NCUA has allowed federal credit unions of all charter types to expand into underserved areas even though the law limits the option to multiple common bond credit unions.

“ACB is concerned that existing field of membership rules could allow a credit union to enter a metropolitan area that qualifies as underserved and serve only the pockets of prosperity within that designated area,” ACB said in its comment letter. “We do not believe federal credit unions should be permitted to hopscotch across a state or a region adding ‘underserved’ areas only to open a branch or service facility that primarily caters to middle class and affluent customers in those locations.”

ACB urged the NCUA to re-emphasize a federal credit union’s obligation to serve persons of modest means in the underserved area. ACB said the NCUA should consider a credit union’s prior record of service to persons of modest means in its existing field of membership before approving a request to add an underserved area. ACB also suggested that the NCUA require credit unions that operate in underserved areas to regularly document how they meet the credit and depository needs of persons of modest means.

Click here to read the comment letter.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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