IOWA CITY -
UICCU had been scheduled to change its name to "Optiva Credit Union" on March 1. That name had been approved last fall by a 198-192 margin. The revote drew intense interest following a petition drive earlier in the month, weeks of extensive local press coverage and vitriolic letters to the editor by both sides.
A group of dissident members, which calls itself "Sink Optiva," alleged the Oct. 4, 2006, member vote that approved changing the CU's name was improper because an undetermined number of completed ballots were accepted prior to commencement of the membership meeting.
Tim Taffe, a member of UICCU and leader of the petition drive that led to the revote, said the room was packed with voters for two hours straight as people "voted and left, voted and left." He said the counting of ballots went on for over an hour, then came the announcement members had decided to "stick with the status quo."
"I was absolutely delighted on behalf of the members and the ideals of credit unions and cooperatives," said a jubilant Taffe. "We knew the more people in the room, the better, because management paid employees to vote for the name change. We had a mixture of snow, ice and hail, and there were no parking places and it was during the dinner hour, but people were circling to try to get in and vote. The line of cars backed up onto the freeway."
More Open And Welcoming
The credit union's management had stated it wished to develop a name that is more open and welcoming to the community. Focus group research had found people believe they must have a connection with the University of Iowa to join, CU executives said.
Management has denied an allegation made by some of the dissident members that the name change is the first step of a conversion to a bank.
The morning after the vote, Jeff Disterhoft, the credit union's CEO, said he was "excited" to bring a close to this chapter in the CU's history.
"Hats off to the board for making sure everyone's opinion was heard," he said. "We will stay with the name the members have chosen."
Prior to the vote, Jim Kelly, UICCU SVP-marketing, said the CU had paid Weber Marketing-a Seattle-based consulting firm that has assisted other credit union 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 dollar amount for the change or an estimate for the cost of printing new collateral materials.
Mark Weber, president of Weber Marketing, said his company has been "very involved in the entire process." In response to the vote, he said, "It is clear there is overwhelming pride in the University of Iowa name. There is a lot of appeal and pride in a Big Ten university name. The second vote was a clear choice. I think it is a much more complex issue, though. The first vote was legal, binding, and approved by the state of Iowa. There never should have been a second vote. But here we are-the members spoke."
Outcome Keeps Lawsuit At Bay
The rejection of the Optiva name could save the CU from litigation. Jose Garcia, CEO of San Diego-based Optiva Mortgage, has argued his company has the legal right to the use of "Optiva"-a contention disputed by Weber and his company's trademark attorney.
Garcia sent a letter dated Feb. 13 to UICCU management noting it offers mortgages, consulting and financial services to clients throughout the U.S. In the letter, Garcia said 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 said his company has been operating since October 2004 and incorporated in June 2006, and is in the process of opening a call center in Missouri.
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."
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."
Deits said he sent a response to Garcia denying assertions UICCU is infringing on any rights held by Garcia or Optiva Mortgage. "We have explained our client has all rights in Iowa."
