Orlando Harmon
Federally chartered credit unions are regulated and insured by the National Credit Union Administration (NCUA). This means that deposits at federally insured credit unions are covered by NCUA insurance, and credit union members are insured for up to $250,000 per individual. As per NCUA rules, all insured credit unions must include the official advertising statement in all their advertisements, including on their website homepages. The official advertising statement can be the full statement, an abbreviated version, or a reproduction of the official sign. The NCUA advertising rule is unique in that it requires a disclosure to appear in all advertisements, unlike other regulations that govern advertisements.
| Characteristics | Values |
|---|---|
| What is NCUA? | National Credit Union Administration |
| Who does NCUA apply to? | Federally-insured credit unions (FICU) |
| What is the official advertising statement? | "This credit union is federally insured by the National Credit Union Administration." or "Federally insured by NCUA." or display the official sign. |
| Where should the official advertising statement be placed? | On the FICU's website homepage, as well as all its advertisements. |
| What are the exceptions? | Advertisements for loans, safety deposit boxes, traveler's checks, and credit disability insurance. |
| What are the size requirements? | The statement must be in a size and print that is clearly legible and may be no smaller than the smallest font size used in other portions of the advertisement. |
| What are the time requirements for radio and TV ads? | Radio and TV ads that do not exceed 30 seconds in time are exempt from the official advertising statement. |
| What are other types of advertisements exempt from the statement? | Display advertisements, promotional items, group advertisements, and advertisements that would be impractical to include the statement. |
| What should be included in the statement for uninsured products? | A disclaimer that they are not federally insured. |
| How much money is insured at federally insured credit unions? | Deposits are insured up to at least $250,000 per individual depositor. |
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What You'll Learn
The official advertising statement
The National Credit Union Administration (NCUA) requires all federally-insured credit unions to include the official advertising statement in all of their advertisements. This rule was first implemented in 2011, and it applies to TV and radio advertisements that are 15 seconds or longer. The NCUA's rule is more stringent than the FDIC's, which has a 30-second threshold.
- The full statement: "This credit union is federally insured by the National Credit Union Administration."
- The abbreviated statement: "Federally insured by NCUA."
- A reproduction of the official sign.
The final rule adds a fourth alternative: "Insured by NCUA." While some have suggested even shorter statements, such as "NCUA Insured," the NCUA has declined to accept these, citing the need to convey the insurance message clearly.
There are some exceptions to the rule. Credit unions are not required to include the official advertising statement on advertisements for loans, safety deposit boxes, traveller's checks, and credit disability insurance. Additionally, credit unions can exclude the statement from advertisements that would be impractical to include it, such as promotional items like calendars or key chains.
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Rules and exceptions
The National Credit Union Administration (NCUA) has a set of rules and regulations that govern advertising for federally-insured credit unions (FICU). The NCUA's advertising rule requires a disclosure to appear in all advertisements, known as the "official advertising statement". This statement can take one of four forms:
- The full-text version: "This credit union is federally insured by the National Credit Union Administration."
- The short version: "Federally insured by NCUA."
- The logo version: Using the official NCUA share insurance logo.
- The abbreviated version: "Insured by NCUA."
The NCUA's advertising rule applies to all forms of advertising, including television, radio, and print. However, there are some exceptions to this rule. For example, advertisements that do not relate to member accounts, such as those for loans, safety deposit boxes, traveller's checks, and credit disability insurance, are exempt from the official advertising statement requirements. Additionally, credit unions are not required to include the official advertising statement on statements of condition and reports of condition that are required to be published by state or federal law.
Another exception relates to font size. While the NCUA requires the official advertising statement to be clearly legible, it does not mandate a specific font size. Credit unions are only required to ensure that the statement is no smaller than the smallest font size used in other portions of the advertisement.
It's important to note that the NCUA's advertising rules are subject to change and update. For example, in 2018, the NCUA amended its rule to bring it into parity with the FDIC rule, which had a less stringent requirement for television and radio advertisements. Therefore, it is crucial for credit unions to stay informed about any changes to the NCUA's advertising rules and regulations.
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Digital advertisements
The NCUA advertising rules require a disclosure to appear in all digital advertisements—the official advertising statement. This statement must be included on the FICU's website homepage, as well as all its advertisements. The term "advertisement" is defined broadly to mean any commercial message that promotes a product or service.
The official advertising statement can take one of four forms:
- "This credit union is federally insured by the National Credit Union Administration."
- "Federally insured by NCUA."
- "Insured by NCUA."
- Display the official sign.
The NCUA has also noted that certain products or services may require a disclaimer that they are not federally insured. For example, FICUs that advertise uninsured investment products must inform members that those products are not federally insured.
Credit unions with digital advertising-related questions can reach out to the Office of General Counsel for guidance on how to comply with the rules.
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The official sign
The NCUA's official sign is a crucial aspect of its advertising regulations, providing consumers with assurance and clarity about federal insurance. The sign, which features the NCUA logo, is a visual representation of the official advertising statement, conveying that a credit union is federally insured. This sign holds significant weight, as it is one of the few exceptions to the requirement that credit unions include the full or abbreviated statement in their advertisements.
According to Section 740.5(a) of the NCUA's Rules and Regulations, federally insured credit unions must include the official advertising statement in all their advertisements, including their main internet page. However, as outlined in Section 740.5(b), an alternative option is to use a reproduction of the official sign. This sign is described in Section 740.4(b), and its usage comes with the flexibility to adjust font size to ensure legibility. This is particularly advantageous for certain types of advertisements, such as those with character limitations like social media ads.
The NCUA logo, as part of the official sign, is already required for webpages where deposits are accepted or accounts are opened. This requirement ensures that consumers are aware that their savings are insured. It also helps to avoid any ambiguity about whether insurance applies to specific products or services. Credit unions advertising uninsured investment products, for instance, must clarify that those offerings are not federally insured.
While the official sign is a powerful tool, it is essential to note that there are specific instances where even the sign is not required. For example, advertisements for loans, safety deposit boxes, traveller's checks, and credit disability insurance are exempt from the official advertising statement requirements. Additionally, credit union supplies like stationery, envelopes, deposit slips, and cheques are also excluded from this mandate.
In conclusion, the official sign of the NCUA is a vital component of credit union advertising. It provides a concise and visually appealing way to communicate federal insurance while adhering to the stringent regulations set forth by the NCUA. By utilising the official sign, credit unions can effectively convey their insured status while maintaining compliance and offering clarity to their members.
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Legibility and font size
The NCUA's Rules and Regulations, Part 740, outlines the requirements for the official advertising statement, including font size and legibility. The official advertising statement, "Federally insured by NCUA," must be included in all advertisements and on the main internet page of federally insured credit unions.
Regarding font size and legibility, the NCUA allows credit unions to alter the font size of the official sign to ensure its legibility on internet pages and documents provided to members, including advertisements. This flexibility enables credit unions to adjust the font size to make the statement clearly readable for their audience. However, altering the font size is not permitted on signs placed at stations or windows where the credit union receives insured funds or deposits in its principal place of business and branches.
The official advertising statement must be in a size and print that is clearly legible. It should not be smaller than the smallest font size used in other portions of the advertisement intended to convey information to consumers. This requirement ensures that the statement is noticeable and easily readable, providing clear information to individuals engaging with the advertisement.
While there is no mandated font size requirement, credit unions must review their advertisements to ensure the official advertising statement is not smaller than the other text used. This relative font size requirement ensures that the statement remains visible and avoids any potential issues with compliance.
Additionally, the NCUA provides an official sign with a blue background and white lettering at no cost to insured credit unions. Credit unions can also purchase signs from commercial suppliers or develop their own, adhering to any color scheme as long as they remain legible and comply with the regulations.
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Frequently asked questions
NCUA stands for the National Credit Union Administration.
The official advertising statement is a statement that federally insured credit unions are required to include in all advertisements. The long version of the statement is: "This credit union is federally insured by the National Credit Union Administration." The short version is: "Federally insured by NCUA." Credit unions may also use a reproduction of the official sign.
Federally insured credit unions must include the official advertising statement in all of their advertisements, including on their website homepages. There are some exceptions to this rule, such as advertisements for loans, safety deposit boxes, traveler's checks, and credit disability insurance.
The official advertising statement must be in a clearly legible size and print and may be no smaller than the smallest font size used in other portions of the advertisement. Credit unions can purchase signs from commercial suppliers or develop their own, as long as they comply with the legibility requirements.
The NCUA has approved the use of "Insured by NCUA" as an alternative to the longer versions of the official advertising statement. While some have suggested even shorter statements, the NCUA has declined to approve these, citing the need to convey the insurance message effectively.
