The Vermont clash over the “B” word – as in “bank” or “banking”– widened Wednesday as CUNA, two state leagues and a NewJersey credit union weighed in.

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As one offshoot from the legal fray which is currently embroiling the $600 millionVermont State Employees Credit Union of Montpelier in a threatenedcease-and-desist order, CUNA and the South Carolina Credit Union League suggested that copyrightprotection remains a key defense for at least one national branding campaign, “Every Day Is Bank Transfer Day.”

In a statement issued with approval by Steve Fowler,president/CEO of the South Carolina league, the trade group arguedthat at least on the narrow issue of “Every Day Is Bank TransferDay” marketing, “trademark protection of the phrase for use by anycredit union nationwide could help Vermont credit unions fill thevoid.”

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That might be the case should the Vermont regulator, StevenKimbell, commissioner and head of the Department of FinancialRegulation, side with the banking lobby and bar VSECU or otherstate-chartered credit unions in Vermont from using the terms“bank” or “banking” in their marketing.

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A formal C&D hearing conducted by Kimbrell could come latethis month.

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It was unclear how many, if any, Vermont credit unions haveadopted the “Every Day Is Bank Transfer Day” brand which wastrademarked in November 2011 and later taken over by CUNA in a dealput together by the $1.3 billion South Carolina Federal CreditUnion of North Charleston.

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Leaders of the South Carolina credit union have been advocatingfor months that the industry needs “a national rallying cry”to promote its message as an alternative to banks and havemaintained the Vermont case is one that requires their input toprotect the brand.

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South Carolina Federal attorneys have contacted thecommissioner's office regarding a formal request or appeal toretain “Every Day Is Bank Transfer Day” in Vermont once the C&Dproceedings get under way.

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Meanwhile, the president/CEO of the New Jersey Credit UnionLeague, Paul Gentile, said his league supports its Vermont peers.He also praised NCUA Board Member Michael Fryzel for an informaloffer “to help” in confronting the C&D order.

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Fryzel's comments were contained in a Credit UnionTimes Letter to the Editor in which he criticized the attackon bank language and wrote, “I am from NCUA and we can help.”

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In a member bulletin this week citing the “ridiculous” Vermontcrackdown on a commonplace term, Gentile said his league maintainsa successful co-op campaign under the banner, “Banking You CanTrust.”

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“Banking instantly tells consumer what is that credit unionsdo,” said Gentile. “We're certainly not banks but we offer bankingservices and have been doing so for 100 years.”

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One New Jersey credit union, the $145 million XCEL FCU ofBloomfield, is a subscriber to “Every Day” and also lauded Fryzelfor “helping us out in what we consider a bold statement.”

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Thomas Quigley, the credit union's director of marketing, said,“We are in full support of what is going on in Vermont” andon that score a group of “Every Day” users are planning tomeet online in the next few days to discussstrategy.

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“It's a great idea that we all cooperate on this,” said Quigley.In the meantime XCEL just added the “Every Day” tagline to itssocial media presence on Facebook and Twitter, he said.

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