After getting an earful from regulators, two Texas credit unions have agreed to pull advertisements that suggested their deposits would be safer with the credit unions than with banks.
The Texas Credit Union Department and the National Credit Union Administration urged Resource One Credit Union in Dallas and Texas Dow Employees Credit Union in Lake Jackson to stop running the ads.
"We were told by the commissioner" of the department "not to do it anymore, so we're discontinuing them," James Brisendine, the president of the $265 million-asset Resource One, told Credit Union Journal.
The ads, which ran in a local newspaper, asked "What is safer than money in the bank?" and answered with "Depositing it at Resource One Credit Union."
Mr. Brisendine said the ads were promoting a 16-month certificate of deposit; they were "really not aimed at taking anyone down," he said.
The Texas Dow Employees Credit Union ad said, "Banking crisis? Not at TDECU."
The regulatory action came after the American Bankers Association notified the NCUA, leaders of Congress, and banking regulators of the ads. In a letter to NCUA Chairman Michael Fryzel, the ABA said the Resource One ad "unwisely raises fears about the stability of the banking system and the Federal Deposit Insurance Corporation."
Mr. Fryzel responded to the ABA by sending a letter to all federal credit unions urging them to resist ads suggesting any weakness in bank insurance. "In these turbulent times consumers need to have faith and confidence in the financial system," Mr. Fryzel said.
