SACRAMENTO, Calif. The California Department of Financial Institutions has issued an advisory prohibiting state charters from using phrases such as “anyone can join” in their advertising.
The DFI has informed credit unions via individual letters and a bulletin announcement to all licensees that statements such as “everyone can join” or “all individuals can join” constitute “impermissible advertising.” In its April bulletin, the DFI stated that “Advertisements that display this message violate the Commissioner’s regulation concerning common-bond requirements for field of membership.” The state’s regulatory code requires that members have a common bond other than just the need to obtain financial services.
The advisory came as a surprise to many, including the state league, which said it currently has no plans to appeal or fight the advisory.
