NCUA Warns Federal Credit Unions About Potential Violations of Common Bond Advertising
by. Keith Leggett
The National Credit Union Administration has called on federal credit unions to stop advertising that anyone can join a credit union.
“If your credit union is advertising that anyone, without limitation, is able to become a member of your credit union, then you may be in violation of federal law and regulation,” the NCUA said (emphasis in original). “Some overly aggressive marketing campaigns by federal credit unions to facilitate membership through associational groups are providing consumers with misleading information about single and multiple common bond membership requirements.”
The NCUA also reminded credit unions of the limitations on using third-party associations to establish a common bond for membership. “NCUA’s Office of Consumer Protection has begun conducting quality control reviews of federal credit unions that may be improperly using associations to sign up members without a common bond,” the agency said.
NCUA warned that “[u]pholding the membership standards of every federal credit union charter is essential to maintaining the integrity of the federal credit union system.”continue reading »