Harper, Otsuka file lawsuit to be reinstated to NCUA board

Former NCUA board members Todd Harper and Tanya Otsuka filed a lawsuit against the administration and agency Monday, challenging what the suit calls their “patently unlawful removal.” President Donald Trump removed both from the board April 16.

The lawsuit notes that since Congress placed a three-member board to lead the agency in 1978, no president has removed a board member before their term expired. Harper and Otsuka also seek re-instatement to the board, and the suit states that any actions made by Chairman Kyle Hauptman as a single board member must be deemed illegal. 

"America's Credit Unions is closely reviewing the lawsuit filed by former NCUA Board members Todd Harper and Tanya Otsuka challenging their dismissals. Our position remains firm in that credit unions' federal regulator should be an independent, bipartisan board,” said Jim Nussle, America's Credit Unions president/CEO. “As the administration has yet to propose nominations to fill the two current vacancies, we continue to engage the NCUA to gain further insights as to what initiatives or actions Chairman Hauptman will take as a one-member board. Recently, we have seen similar legal challenges across various federal agencies that have experienced similar dismissals. We will continue to act in the best interest of our member credit unions and their 142 million members."

Following Harper and Otsuka’s removal, NCUA has indicated that Chairman Kyle Hauptman constitutes a quorum as the only board member. Hauptman, in a LinkedIn video posted last week, said “all of us at NCUA are working together to build a more streamlined agency focused on executing our core mission of protecting the safety and soundness of the credit union system.”