Vermont's regulator, now at the center of a bank/credit unionscrap over the use of “bank” and “banking” in credit unionadvertising, Wednesday set Aug. 22 as the date for a preliminaryconference hearing on a proposed cease & desist order against the $600 million Vermont StateEmployees Credit Union.

Steve Kimbell, commissioner of banks and credit unions and headof the Vermont Department of Financial Regulation, named RobertSimpson, a retired Chittenden County State Attorney, as hearingofficer for what is shaping up to be a contentious proceeding onthe merits of an administrative action by the state to block the“bank”language.

• UPDATE, Oct. 8, 2012, Vermont Credit Union, Regulator Settle 'B' WordDispute

Clifford Peterson, the DFR's general counsel, stressed that theinitial Aug. 22 session is a precursor to the full C&D hearingin Montpelier, which he said will most likely be held a week afterthe preliminary conference.

On that score, a leader in Occupy Burlington, who was involvedin a separate clash last June over representation on the board ofthe $345 million Vermont Federal Credit Union of Burlington, Vt.,said its members intend to attend the DFR hearing on VSECU.

“We have been watching the situation closely, and myself andseveral like-minded people have offered assistance turning peopleout to the hearing,” said Matt Cropp, an unsuccessful candidate fordirector of the Vermont FCU board.

Occupy leaders in the Vermont Federal Credit Union MembersAssembly have been quite vocal in urging Vermonters to move theirfunds to a credit union from large regional banks and have picketedone downtown Burlington institution.

Commenting on VSECU's imbroglio with DFR and the Vermont BankersAssociation, Cropp said that he is “really impressed with howaggressively the credit union and its leadership are bull-doggingthe interests of the membership.”

The president/CEO of VSECU, Steven Post, said Tuesday he and thecredit union lawyers are ready for the DFR hearing. They arepreparing a legal defense with the inclusion of past citations offederal credit unions which have been challenged on “bank” wordingin ads. One such instance involves a credit union in Minnesota andthe case particulars are contained in VSECU's DFR documents, saidPost.

On Occupy participation, Peterson said the C&D hearing isopen to the public should they decide to attend.