Vendor Endorsements Okayed

ALEXANDRIA, Va. - (01/10/06) -- NCUA Monday cleared federal creditunions to endorse vendors and other third-party providers inadvertisements and marketing materials. In a new legal opinionletter, NCUA told Glendale Area Schools FCU, in Montrose, Calif.,nothing in the Federal CU Act or NCUA's own regulations prohibitssuch vendor endorsements. "We believe a recommendation based on anFCU's experience with a vendor can be useful to other credit unionin making their own determinations about a product or service,"NCUA said. "Endorsements from satisfied customers are common in themarketplace and, assuming they are offered in good faith, presentminimal risk."