NORTH LIBERTY, Iowa–In response to a new state law, the University of Iowa Community Credit Union has informed members it will change its name.
As CUToday.info reported here, the credit union’s board and management met over the weekend to discuss the response to a state law that bars credit unions from using public university names in their titles, and further prohibits university trademarks from becoming part of unassociated group names.
The new law was driven by several members of the Iowa Board of Regents who had expressed specific concerns regarding University of Iowa Community Credit Union and the misconception by some that it is affiliated with the university. As CUToday.info earlier reported, Regent Larry McKibben, who has been the loudest voice among the Regents saying he is concerned over the credit union’s name, did not disclose he is also part-owner of Farmers Savings Bank in Marshalltown.
In addition to UICCU, the new policy also affects University of Northern Iowa Credit Union. At the time of this report, UNICU had not made a statement regarding its plans.
In an email to members and a statement on the its website, University of Iowa Community CU said, “As you may know, a new state law requires UICCU to change its name by April 2019. Please know a change in our name will not change the commitment to our member-owners. No matter what our name becomes, we remain committed to providing extraordinary service to you and helping all of our members meet their financial goals for generations to come.”
The Des Moines Register reported UICCU has budgeted approximately $2.5-million for expenses associated with the new name.
UICCU said it will accept suggestions for a new name online, and explained it does not need a vote of members to select a new title.
"We will develop a name that is simple and not geographically constraining,” the credit union said in a page of FAQs on its website. "We will work to create a name that is welcoming and reflects the cooperative’s values and heritage.
University of Iowa Community CU attempted to change its name to Optiva in 2007, but the move was rejected by members.