ABA urges NCUA to retain deposit advertising requirement for credit unions

In a letter today, the American Bankers Association said it was puzzled by a National Credit Union Administration proposal to remove the requirement that credit union advertisements state that their deposit products are insured, noting that banks must do so.

The NCUA recently proposed to streamline its rules governing credit union advertisements and notice of insured status. Among the changes, the proposal would remove the requirement to include an official statement of insurance in credit union ads, although the requirement would remain in effect at locations where deposits are usually received.

ABA noted that the FDIC recently updated its signage rules to make clear what is and is not insured across digital and traditional banking spaces. It urged the NCUA to align its proposal with the FDIC signage rules to avoid consumer confusion.

“Aligning NCUA’s approach with FDIC’s calibrated framework would minimize divergence across digital and traditional channels where consumers routinely encounter bank and credit union messages,” ABA said.

ABA also suggested the NCUA adopt several “guardrails” if it decides to remove the advertising requirement, such as coordinating with the FDIC on insured‑status communication principles and offering optional best‑practice models for voluntary insured‑status cues.