Changing your credit union’s name
Sometimes a federal credit union (FCU) considers a name change. One common reason for this might be that over time, changes in the FCU’s field of membership could mean the original name no longer reflects the credit union’s membership. From a branding and marketing perspective, the name may inaccurately signal to the public that the FCU is not “for them.” As an example, a FCU that used to be a community charter may have converted to that of a multiple common bond at some point and expanded its service area. Having a name tied to a particular geographic place may make it difficult to attract new members in other locations.
Our members sometimes ask whether NCUA has issued guidance on FCU name changes. According to the agency, there are two general paths a FCU can consider here. One is to adopt a “trade name,” where the legal name of the credit union does not change, but the credit union utilizes another name in its advertising. Specifically, section 740.1 of NCUA’s regulations states:
Ҥ740.2 Accuracy of advertising.
No insured credit union may use any advertising (which includes print, electronic, or broadcast media, displays and signs, stationery, and other promotional material) or make any representation which is inaccurate or deceptive in any particular, or which in any way misrepresents its services, contracts, or financial condition, or which violates the requirements of §707.8 of this subchapter, if applicable. This provision does not prohibit an insured credit union from using a trade name or a name other than its official charter name in advertising or signage, so long as it uses its official charter name in communications with NCUA and for share certificates or certificates of deposit, signature cards, loan agreements, account statements, checks, drafts and other legal documents.” (Emphasis added.)
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