LIVONIA, Mich. (2/5/14)--A marketing company in California agreed to a 2012 cease-and-desist order by the Michigan Department of Insurance and Financial Services (DIFS) to stop misusing the term "credit union" to market loan products.
D and D Marketing Corp., Encino, Calif., had been using the terms "Michigan" and "credit union"--as well as names of legitimate credit unions--in marketing "unlicensed payday loans and unauthorized credit union loans to Michigan residents," according to the order.
One website asserted that it actually was affiliated with a Michigan credit union, while others used a combination of "Michigan," "credit union" "quick loans" and "cash advance" in the website address.
It is a violation of the Michigan Credit Union Act to use the term "credit union" to promote business operations by an organization that is not a licensed credit union (Michigan Monitor Feb. 4).
D and D Marketing had asserted that the websites and promotions had been operated by former and/or unaffiliated third-party marketing partners or "publishers."
In consenting to the cease-and-desist order, D and D Marketing agreed to "undertake strict marketing and advertising compliance practices" to ensure the legitimacy of third-party providers and all advertising and marketing will be done in accordance with Michigan law.