Accuracy of Advertising and Use of Credit Union Name

PURPOSE: This rule explains what is allowed in the use of advertising and when a credit union uses an assumed name, also known as a “dba” (doing business as). (1) No insured credit union may use any advertising (which includes print, electronic, or broadcast media, displays and signs, stationery, and other promotional material) or make any representation which is inaccurate, misleading, or deceptive in any particular manner, or which in any way misrepresents its services, contracts, or financial condition, or which violates the requirements of the National Credit Union Administration’s Truth In Savings Regulation 707.8. The exception to this section is the approved use of an assumed name as described in sections (4) through (7) of this rule. (2) If the director notifies a credit union that an advertisement is deemed to be inaccurate, misleading, or deceptive, the credit union will have fifteen (15) days following receipt of the notification to provide the director with information substantiating the truthfulness of the advertisement. (3) The use by any person, co-partnership, association, or corporation, except credit unions formed under the provisions of this chapter or any association composed exclusively of credit unions, including any service corporation wholly owned by credit unions or an association of them, of any name or title which contains the words “credit union” shall be a misdemeanor. (4) Subject to the requirements of this rule, a credit union may adopt an assumed name to be used in advertising or signage, provided that the credit union uses its official charter name in communications with the division’s office and for share certificates, signature cards, loan agreements, account statements, checks, drafts, and other legal documents. The assumed name may also be used in the above materials provided that it is clearly identified as such (e.g., ABC Credit Union dba XYZ Credit Union). (5) A credit union shall not use an assumed name until it has received written approval from the director and has registered the name with the secretary of state. (6) The director shall not issue approval to use an assumed business name if, by the director’s determination, the designation may confuse or mislead the public, or if it is not readily distinguishable from, or is too similar to a name of another credit union doing business in this state. The director shall also make this determination in the event a credit union requests to change its official charter name. (7) It is the responsibility of the individual credit union to comply with state and federal law applicable to corporate names. (8) A credit union that intends to use an assumed name shall take reasonable steps to ensure that use of the assumed name will not result in confusion to the extent that its different facilities will be mistaken as different credit unions or that the shares deposited at or through the different facilities are separately insured from those of the other facilities. (9) Each credit union will take the necessary steps to follow the National Credit Union Administration’s requirements for the official sign display noting federal insurance. (10) Any advertising that mentions share or savings accounts insurance provided by a party other than federal insurance must clearly explain the type and amount of such insurance and the identity of the carrier and must avoid any statement or implication that the carrier is affiliated with the federal government. AUTHORITY: section 370.071, RSMo Supp. 2007 and section 370.360, RSMo 2000.* Original rule filed April 29, 2008, effective Nov. 30, 2008. *Original authority: 370.071, RSMo 1977, amended 1978, 1986, 1991, 2007 and 370.360, RSMo 1939, amended 1972.