Vermont State Employees Credit Union and state regulators weretold Wednesday to begin settlement talks over the $600 millionMontpelier credit union's use of the words “bank” and “banking” inits marketing.

Meanwhile, the hearing officer, in a 30-minute session in acapitol conference room on Wednesday, set an Oct. 24 hearing datefor the proposed cease-and-desist order urged by bankers and underconsideration by the state's Department of FinancialResources.

• UPDATE, Oct. 8, 2012, Vermont Credit Union, Regulator Settle 'B' WordDispute
• READ Editor-in-Chief Sarah Snell Cooke's column on the proposedban.
• READ NCUA Board Member Michael Fryzel's letter to the editor.

Hearing officer Robert Simpson ordered VSECU's attorney and DFRGeneral Counsel Clifford Peterson to start working with the parties“to hold settlement discussions with a goal of narrowing oreliminating the issues that separate them,” said DFR CommissionerStephen Kimbell.

Kimbell's agency proposed the cease-and-desist order afterhearing complaints from the Vermont Bankers Association. VSECU, theAssociation of Vermont Credit Unions and CUNA are opposing the proposed ban on use of what they sayare commonly used terms for financial transactions.

Steven Post, president/CEO of VSECU, declined comment “until Isee the final order” for a hearing and settlement talks coming outof the hearing Wednesday.

Representing VSECU at the hearing was Montpelier attorney JackieHughes. Kimbell said there were 10 to 12 people in the audience butnone spoke. He said he was not at the hearing.