The Vermont clash over the words  “bank” or “banking”widened last week as CUNA, two state leagues and credit unionexecutives weighed in.

As one offshoot from the legal fray that 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 brandingcampaign, “Every Day Is Bank Transfer Day.”

In a statement issued by President/CEO Steve Fowler, the SouthCarolina League argued that at least on the narrow issue ofmarketing “Every Day Is Bank Transfer Day,” trademark protection ofthe phrase as used by credit unions nationwide “could help Vermontcredit unions fill the void if the state regulator's rulingstands.”

The prospect of the Vermont commissioner, Steven Kimbell, headof the Department of Financial Regulation, siding with the bankinglobby and barring Vermont State or other state-chartered creditunions from using the terms bank or banking in marketing remains apossibility, officials said.

Proceedings on issuance of a formal bank-supported cease anddesist, strongly opposed by the industry, are slated to begin Aug.22 in Montpelier. A formal hearing would be conducted around LaborDay if finally ordered.

CUNA officials, meanwhile, made clear they are closely watchingVermont developments and stand ready to provide legal assistance toVermont State Employees Credit Union or the Association of VermontCredit Unions in the dispute with the commissioner who has thebacking of the Vermont Bankers Association.

“We understand that at this point this is a Vermontadministrative proceeding, but we will take our cues from JoeBergeron,” said Pat Keefe, CUNA vice president of communications,referring to the president/CEO of the Vermont league.

Vermont State Employees has acknowledged the bank language issuegoes back years but apparently cropped up in 2011 with prodding bythe banking lobby when the credit union started calling itself a“banking cooperative” in its ads. That may have created consumerconfusion, charged Kimbell.

In defending its position, Vermont State Employees President/CEOSteven Post, challenged the state regulator  demonstratethat the action “is consumer-focused rather than a reaction to theVermont bankers.” 

Two weeks ago, South Carolina Federal's attorneys contacted theVermont commissioner's office regarding a formal request to retain“Every Day Is Bank Transfer Day” in Vermont once the cease anddesist proceedings get under way.

Meanwhile, the president/CEO of the New Jersey Credit UnionLeague, Paul Gentile, said his league supports its Vermont peers,while also praising NCUA Board Member Michael Fryzel for aninformal offer to help in confronting the cease and desistorder.

Fryzel's comments were contained in a Credit Union Times letterto the editor in which he criticized the attack on bank languageand wrote, “I am from NCUA and we can help.”

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

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

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

Thomas Quigley, the XCEL director of marketing, said, “We are infull support of what is going on in Vermont” and on that score agroup of “Every Day” users are planning to meet online in the nextfew days to discuss strategy.