NCUA's Fryzel to Vermont DFR: Are You Serious? Posted by AVCU on 1:00 PM

NCUA board member Michael Fryzell had some choice words regarding the Vermont Department of Financial Regulation and its cease and desist action against Vermont State Employees CU (VSECU).

“The recent decision by the State of Vermont Department of Financial Regulation ordering the Vermont State Employees Credit Union to stop using words such as ‘bank’ and ‘banking’ in its marketing, communications and advertising begs the question, are you really serious?” asks NCUA Board member Michael Fryzel in an Op-Ed letter appearing in Credit Union Times.  Fryzel goes on to argue that “banking is what credit unions do and in some cases they do it better than financial institutions with bank in their name.” Similar to a raft of other industry commenters and the general public, Fryzel points out that “bank” is commonplace and generic to describe “where one engages in receiving, lending, exchanging and safe-guarding money. Whether it’s done at a place that uses ‘bank’ in its name or one that calls itself a savings and loan or perhaps at a credit union, it’s all one and the same,” Fryzel states.

Fryzel makes an offer to Vermont credit unions: “I am from NCUA, and we can help. Federally chartered credit unions can use terms like ‘bank’ and ‘banking’.”

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