NCUA Clears CUs To Endorse Third Parties
NCUA last week cleared federal credit unions to endorse vendors and other third-party providers in advertisements and marketing materials. In a new legal opinion letter, NCUA told Glendale Area Schools FCU, in Montrose, Calif., nothing in the Federal CU Act or NCUA's own regulations prohibits such vendor endorsements. "We believe a recommendation based on an FCU's experience with a vendor can be useful to other credit union in making their own determinations about a product or service," NCUA said.
"Endorsements from satisfied customers are common in the marketplace and, assuming they are offered in good faith, present minimal risk."