Storm Clouds Gather Over Another CU Name Change

BURLINGTON, Vt. – Just as members are organizing to recall a new name for University of Iowa Community CU, members at another credit union are raising their voices to opposition of a new moniker for the credit union. Members at Vermont State Employees CU, some of them state employees, are raising doubts about a pending referendum to change the name of the $400 million credit union to Veristate, as management seeks to de-emphasize employment with the state as a requirement for membership. “The board has decided that state employees are the past, not the future, and they need to reach out to new customers. Besides, state employees save too much and don't borrow enough,” wrote one disgruntled member in the local newspaper this weekend. Another member called on others to contact the board and register their opposition to the new name. The criticism comes as he credit union’s 40,000 members are voting by mail ballot, expected to culminate in a special meeting March 28, whether to become Veristate CU. And it comes as members of University of Iowa Community CU are scheduled to meet in a special meeting Wednesday to vote a second time whether to change the name of the $525 million credit union to Optiva CU. Opponents of the Optiva name petitioned the credit union to re-vote the close ballot approving the name change and the board has agreed to do so. Controversies over name changes are rare among credit unions, with as many as 350 to 400 credit unions adopting a new name every year. Federally chartered credit unions may change their names without member consent, but state charters in most states require member approval.