Bankers' groups sue Nebraska banking department, credit union over expansion

Two banking trade groups are suing the Nebraska Department of Banking and Finance and a Lincoln credit union over the credit union's plans to expand its reach.

The Nebraska Bankers Association and the Nebraska Independent Community Bankers filed a lawsuit last week alleging that the Banking Department's approval of an expansion by MembersOwn Credit Union was improper.

MembersOwn, which is based in Lincoln, applied early last fall to expand its field of membership from Gage and Lancaster counties to a 13-county area in southeast Nebraska.

The Banking Department held a hearing on the request in January and then ruled last month that MembersOwn could expand to Jefferson, Saline, Seward, Saunders, Cass, Otoe, Johnson and Pawnee counties because they "comprise an area that is a well-defined local community for purposes of establishing a community charter credit union." The department ruled, however, that Butler, Nemaha and Richardson counties did not qualify as part of that "well-defined local community," and it denied expansion to those areas.

Read more: https://journalstar.com/business/local/bankers-groups-sue-nebraska-banking-department-credit-union-over-expansion/article_fcbea059-4742-5d57-a259-c9cd899c4662.html
(Lincoln Journal Star)