ALEXANDRIA, La.–Red River Bank here has filed suit against Red River Employees FCU over alleged trademark infringement and unfair competition.
The bank filed suit against the Texarkana, Texas-based credit union in Western District of Louisiana federal court, saying the credit union’s Oct. 2, 2017 merger with the former Shreveport Federal Credit Union has now brought it similar name into the bank’s market areas.
With the merger, the $801-million Red River EFCU now operates branches in four Louisiana parishes and two counties in Mississippi.
"Prior to Oct. 2, 2017, the credit union and RRB coexisted in their respective trade areas without generating any substantial confusion among their members, customers, or the general public," the bank stated in its complaint.
But now the two are in direct competition, the compliant goes on to state, leading to “confusion” among consumers between the two financial institutions.
Red River Bank is alleging the credit union is infringing on its trademark and engaging in unfair trade practices in violation of federal law and in violation of the Louisiana Unfair Trade Practices Act. It is seeking to have the credit union prohibited from using the names Red River Employees Federal Credit Union, Red River Credit Union and the RRFCU logo "and confusingly similar variants thereof."
The bank and its parent holding company are further seeking attorney fees and actual damages and want an accounting of RRFCU's profits in Louisiana and Mississippi.
Red River Employees Federal Credit Union has until Dec. 11 to file a response to the complaint.