Will these ads piss off federal regulators?
Last week, The Financial Brand wrote about how the FDIC and the NCUA are cracking down on financial institutions that attack the safety or soundness of any financial institution (or category of financial institutions). Their fear is that such ads might trigger an unwarranted run on deposits.
So how will federal regulators feel about these clever and attractive ads from Barron & Company for North Coast Credit Union?
These ads clearly ride the line of what federal regulators are labeling “acceptable.” There could be trouble, specifically with copy suggesting that North Coast is “safe” while “your bank is giving you that sinking feeling.” Or that any bank might be taking a “nose dive.”
Key Question: If the NCUA censors these ads, do you think they’ve gone too far?
Bottom Line: North Coast Credit Union is going to get mileage out of these ads one way or another. These days, you almost hope that the FDIC or NCUA tells you to pull your ads because you can milk it for a mountain of PR. Local news outlets will be happy to report about a financial institution that’s “so safe and sound, the Feds are telling them to be careful with their marketing.” And the best part is that neither the NCUA nor FDIC can tell a publication (including this one) that it can’t reprint the ads as part of the story.
Previous related stories from The Financial Brand:
- Bank runs “Trust Us” ad one day, fails the next
- Interactive financial ads you’ll get a kick out of (literally)
- Casting call: Credit union TV ad contest draws 37 entries
- Meltdown Marketing: Ads from October
Tags: bailout, FDIC, NCUA, North Coast
March 17th, 2009 at 7:57 am
NORTH COAST CREDIT UNION ROCKS. They are telling it like it is. And why not it seems the credit unions never did approve these sub-prime interest only, pick-a-payment, as-stated income loans. So they should be proud they are not a drain on the peon taxpayers. Of course the ads are not politically correct and quite naturally the NCUA & FDIC will get all worked up over it. Maybe North Coast has raised the bar for others to follow. Just a thought.
March 18th, 2009 at 6:23 am
No doubt, I agree w/ Marianne, these ads are awesome. As an in-house designer for a credit union I’m proud to be working for a company that didn’t participate in the risky lending, we should be promoting that responsible and member-focused mindset we’ve had all along.