America’s Credit Unions defends industry against former NCUA board member Todd Harper’s attacks

At a Brookings Institute event on Thursday, former NCUA Board Member and Chairman Todd Harper tried to paint the picture of a broken credit union industry. Since his removal from the board, Harper has been outspoken about his criticisms and concerns for the industry, including at the Brookings Institution event and on LinkedIn Thursday. America’s Credit Unions strongly disputes his perspective.

“The credit union industry remains firmly committed to its mission of ‘people helping people.’ While some are trying to drive a wedge between large and small credit unions, it is not asset size, nor how credit unions spend their marketing dollars, nor the size of their field of membership that defines a credit union,” said America’s Credit Unions President and CEO Jim Nussle. “It is how they serve their members and communities. It is how they show up for people in difficult times.

“Credit unions serve more than 142 million Americans—military members and their families, teachers, farmers, first responders, small business owners, Main Street America. They cure banking deserts when banks abandon communities. They ensure all Americans have access to safe and affordable financial products and services. Credit unions of all sizes ensure the safety and soundness and strength of the industry.” 

Harper’s remarks were made as he is fighting his removal from the NCUA Board on the legal front.

The U.S. District Court in the District of Columbia this week provided additional timing details on the legal challenge from two dismissed NCUA board members. May 7 is the deadline for the defendants to file their opposition to the lawsuit filed by former NCUA board members Todd Harper and Tanya Otsuka, with May 12 as the deadline for the plaintiffs’ reply. 

On Tuesday, the plaintiffs filed a motion for preliminary injunction and motion to expedite the proceedings. In their filings, former board members Harper and Otsuka argue that the president illegally removed them without cause and Congress intended that the agency’s board members be shielded from presidential removal under legal precedent, including a case called Humphrey’s Executor. This legal precedent is relied upon in other current lawsuits challenging the President’s removal of independent agency board members.

This is the latest in the litigation activity since President Donald Trump removed Harper and Otsuka April 16, leaving Chairman Kyle Hauptman as the sole board member. 

NCUA issued a release following the removals, stating its view that a single board member constitutes a quorum when there are no other board members. Harper and Otsuka are now seeking reinstatement and nullification of any potential actions made under a single board member.

The agency set the agenda for its May 22 board meeting last week, but the parties to the lawsuit have not yet confirmed whether the meeting will proceed as planned. Monthly board meetings starting in June and running through the end of the year are now listed as “tentative” on the NCUA’s website. 

America’s Credit Unions continues to monitor the lawsuit while advocating to Congress and the administration for an independent NCUA led by a full, three-member board. An FAQ document is available online, with ongoing updates.