WASHINGTON — Credit unions should not question the safety of bank deposits in an effort to gain more members, NCUA Chairman Michael E. Fryzel wrote in a letter to the leaders of federal credit unions.
He sent the letter yesterday in the wake of complaints from the American Bankers Association about advertisements of two Texas credit unions that implied that bank deposits are somehow less secure than those at credit unions.
"NCUA has asked the credit unions to discontinue the advertising and refrain from making such remarks. This type of activity is, in my experience, uncharacteristic of credit unions.. Credit unions do not need to criticize another financial institution regardless of its charter. Your performance is all that matters," he wrote.
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Earlier this week, the NCUA and Texas Credit Union Commissioner Harold Feeney ordered Resource One Credit Union in Dallas to cease and desist using an ad that says: : "What is safer then money in the bank? Depositing it at Resource One Credit Union." Later in the ad, after touting its competitive rates and the fact that it is not beholden to Wall Street, the credit union said "Your bank may be failing but Resources One is NOT! Don't take chances with your money."
Last month, federal and state officials ordered another Texas credit union –Texas Dow Employees Credit Union in Lake Jackson–to stop using an ad that stated "Banking crisis? Not at TDECU."
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