IOWA CITY -
UICCU had been scheduled to change its name to "Optiva CU" on March 1. The revote will be Feb. 28.
The group, which calls itself "Sink Optiva," alleged the Oct. 4, 2006, vote on the name change was improper because an undetermined number of ballots were accepted prior to commencement of the meeting.
Jim Kelly, UICCU's senior vice president of marketing, said only "one-third of 1%" of the membership was adamantly opposed to the name change. However, he added, the credit union would honor the petition and hold a new vote.
"The same names keep showing up in the newspapers," he said. "We have had to put out a lot of false fires. There is no truth to the allegation we are converting to a bank. We merely wanted to come up with a name that is more open and welcoming to the community." Kelly said focus groups showed people believe they must have a connection with the University of Iowa to join.
"It has been difficult in the past to recruit new members," he said. "We'll meet again and vote and hope we keep the name Optiva. We have invested a lot of money in the new name and are excited about opening the doors as Optiva Credit Union on March 1."
According to Kelly, UICCU has paid Weber Marketing - a Seattle-based consulting firm that has assisted other CU name changes-approximately $214,000 for market research, focus groups and other costs relating to the planned name change. Kelly did not have a total amount for the change including the cost of new collateral materials.
Mark Weber, president of Weber Marketing, said his company has been "very involved in the entire process." He said Iowa is one of a small number of states that require a member vote on a name change, which has created a "unique" situation.
"Most name changes don't go to a vote, the credit union changes the name and goes on," he explained. "There is no question the current name is a great name. It is a Big Ten school, and there is lots of equity in the name. But, we researched the current name with members and found there is not an overwhelming attachment-more so with alumni or those directly affiliated with the university."
Weber said UICCU's board and management do not deserve the criticism they have received and characterized the opponents of the name change as a small minority of the 44,000 total members.
According to Weber, the board did not have to approve a new vote on the name, because Iowa law specifies signatures from 100 members or from 2% of the membership, whichever is greater, is required to force a special meeting.
Potential Litigation Looms
If the name change is overturned by the Feb. 28 revote, it might save the CU from litigation. San Diego-based Optiva Mortgage sent a letter dated Feb. 13 to UICCU management noting it offers mortgages as well as consulting and financial services to clients throughout the U.S. Jose Garcia, the company's CEO, wrote that he hopes "legal action for federal violation of our trade name, to be filed in United States Federal Court in San Diego, California, will not be necessary."
Garcia told CU Journal his company has been operating since October 2004 and incorporated in June 2006. He said he was unaware of UICCU's intended name change until contacted by Taffe last fall. Garcia recalls being surprised as a previous incident had left him with the impression a company would ask permission.
"Right after we opened our doors in 2004, we got a letter from an attorney for a credit union in California seeking permission to use 'Optiva.' We said 'No,' because we felt there was a strong probability of confusion. It took one telephone call and it went away, which is why we did not pursue this aggressively."
Optiva Mortgage is in the process of opening a call center in Missouri to serve the Midwest, Garcia said. "Obviously, this includes Iowa."
Weber disputes Garcia's and Optiva Mortgage's claims to the name. Weber said the trademark attorney who handled the UICCU account, Dave Deits, did a full, national search for registered use of "Optiva," adding the state of Iowa on Nov. 26, 2006, approved UICCU's use of "Optiva." The CU has also registered the name with The U.S. Patent and Trademark Office.
Deits told Credit Union Journal Optiva Mortgage has "common-law use" of the name in the San Diego area, but does not have a federal trademark. "University of Iowa Community Credit Union does," he said. "The examination process has been completed, and the credit union has pending authorization."
