Vendor Endorsements Okayed

Register now

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."

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER