ARLINGTON, Va.-NAFCU is calling on NCUA to drop consumer advocate Suze Orman as a spokesperson. But the agency has said it has no plans to do so.
In a letter to the agency, NAFCU President Fred Becker said NCUA should "reassess" the use of Orman in materials related to the National Credit Union Share Insurance Fund (NCUSIF) as the result of a prepaid debit card Orman has launched that has been the subject of some criticism from consumer advocates, and other advice from Orman NAFCU finds objectionable.
"Ms. Orman has also encouraged consumers who are underwater in their homes to walk away from their mortgage commitments," said Becker.
Becker noted NCUA has reported spending approximately $1.4 million on advertising that has included Ms. Orman, although those expenses are for production-related costs; Orman has said she is donating her name and time.
Orman's prepaid "Approved Card" is being issued through a partnership with TransUnion. The goal of the pilot program is to see whether spending activity on a prepaid card can be used to build a credit score.
In a letter to Keith Kearney, CEO of InvesTex CU in Houston, NCUA Chairman Debbie Matz said NCUA "has no plans to remove (Orman's) image" from any of the agency's websites or other materials.
Matz's letter was written in response to an earlier letter from Kearney urging Orman be retained.
"...NCUA realizes the extraordinary value of Suze Orman's association with credit unions," wrote Matz. "Her multimedia campaign with NCUA touched more than 190 million consumers-less than one penny for every positive impression."
Matz cited Orman's call that consumers cut up bank credit cards and move to CU-issued cards, and aid that thanks to Orman "more consumers are now putting their trust in credit unions."
