Alabama CU Regulator: Bank, Banker, and Banking Cannot Be Used in CU Ads

Alabama CU Regulator: Bank, Banker, and Banking Cannot Be Used in CU Ads

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Title : Alabama CU Regulator: Bank, Banker, and Banking Cannot Be Used in CU Ads

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Alabama CU Regulator: Bank, Banker, and Banking Cannot Be Used in CU Ads

In a letter to CEOs of Alabama state chartered credit unions, the Alabama credit union regulator reminded the CEOs that Alabama state chartered credit unions cannot use the words Bank, Banker, and Banking in their advertising.

The March 17 letter was issued because the state regulator became aware of credit unions using these words in their advertisements.

The letter noted that "any violation of this prohibition shall subject the party to penalties of $500 per day up to a maximum of $50,000"

The state regulator wrote that the same restriction applies to any non-credit union entity using the term "Credit Union."

However, the regulator wrote that credit unions may use language to describe a specific product like e-banking or internet banking.

This prohibition does not apply to federal credit unions operating in Alabama.

Read the letter.


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