The NCUA made clear Friday it expects to follow through on a request to a Los Angeles credit union to delete a safety/soundness ad from its Web site on grounds CU messaging on unsafe banks runs counter to regulations.
In a statement, the NCUA reminded CUs against "deceptive or misleading" ads relating to bank conditions and noted it has made "a request for cooperation" to the $252 million Glendale Area FCU about an online ad which began appearing in January comparing its favored Bauer Financial rating over other banks, CUs and a savings & loan.
One mention in the Bankrate.com reprint was to the failed IndyBank of nearby Pasadena as well as Washington Mutual and Wachovia, all taken over by other banks.
The president/CEO of Glendale Area FCU, Stuart Perlitsh, has stood firm for the time being that his ad merely points out differences between his CU and competitors, some of which are engaged in what he calls a "rogue turf war" to grab market share even though their tactics "have failed miserably" pointing to large 2008 losses. At least one of the named CUs, Wescom, has declined comment.
Without mentioning Glendale Area by name, the NCUA statement said if the regulator "determines a credit union is violating a regulation, it can require compliance or impose penalties." It said also its regional director, Melinda Love, of Tempe, Ariz. would continue "discussions with the CEO" about the ad.
Perlitsh maintains a free speech issue is also involved with the regulator acting unfairly in a "censorship" capacity.
