Credit Union Association’s High Court victory

31 October 2014

Credit Union Association’s High Court victory ‘a win for all co-operatives’

The New Zealand Association of Credit Unions (NZACU) High Court victory to change its name to 'Co-op Money NZ' is a win for all co-operatives.

The Co-operative Bank filed for a temporary injunction against the NZACU in June after NZACU announced it intended to change its name to ‘Co-op Money NZ’.

NZACU Chief Executive, Henry Lynch, said the outcome is a win for co-operative principles and democratic rights, and all cooperatives in New Zealand can sleep a little easier tonight following this decision.

“The Co-operative Bank does not have a monopoly on the terms 'co-operative’ or ‘co-op’, and we were determined to defend the right to use these words not just for ourselves, but for all New Zealand co-operatives" said Mr Lynch.

The Co-operative Bank's attempt to prevent NZACU changing its name to ‘Co-op Money NZ’ threatened the very concept of co-operative organisations, he said.

"There are thousands of organisations, both large and small, in all types of industries describing themselves as co-operatives, including the community banking movement. We represent 20 credit unions and mutual building societies, with over 200,000 mum and dad members" said Mr Lynch.

"The co-operative financial industry has been operating in New Zealand since the mid 1800’s, and we have operated as a cooperative for over 50 years. The terms ‘co-operative’ or ‘co-op’ are generic and can’t be monopolised by anyone” said Mr Lynch.

“The new name and mark is a great representation of the community spirit that exists within the mutual financial services organisations we represent” said Mr Lynch.

“The word ‘Co-op’ represents our Members’ strong 150 year co-operative history and co-operative nature in working with their members and communities. The three ‘people’ at the top of the mark signify our Member organisations, their members and the community all co-operatively working together.

The word ‘Money’ represents what our members do day in day out - helping people sort out their money worries” said Mr Lynch.

“We’ve been around for over 50 years - felt it’s time for us to have a more modern, friendly and people focused face to our organisation that really describes who we are and what our Members do today” said Mr Lynch.

New Zealand Association of Credit Unions (NZACU):
Credit unions and mutual building societies are co-operatively owned financial service providers, providing their members with a similar range of services to a bank. Credit unions and building societies are all independently owned and operated by their members for their members, and any profits are returned to the members in a combination of ways i.e. fairer fees, interest rates and community involvement.

NZACU is the industry association for credit unions and building societies (www.nzacu.org.nz) and exists to represent, promote and support its 20 Member credit unions and building societies, providing cost-effective business services.

NZACU's members employ over 550 staff, represent 200,000+ members, with more than 90 branches, assets of over $1.4 billion and collectively are the sixth largest financial transactor by volume in New Zealand. NZACU also wholly own Credit Union Insurance Ltd (www.cui.co.nz), a fully licensed insurance provider, under the Insurance (Prudential Supervision) Act 2010, with over 67,000 lives covered.

The NZACU is a member of global trade association WOCCU, the World Council of Credit Unions, which represents over 208 million people in 103 countries across the globe. This international network operates under the vision:

“Improving people's lives through credit unions” and promotes the sustainable development of credit unions and other financial co-operatives around the world.

The NZACU is also a member of Cooperative Business New Zealand (www.nz.coop), the industry body whose mission is “bringing together the country’s cooperative and mutual businesses to promote, encourage and support the co-operative and mutual business model, and act as the advocate for those engaged in co-operatives and mutuals.”

Collectively the mutual banking sector, including mutual banks, building societies and credit unions, represent more than $600 million in revenue per year with a number of these organisations among Cooperative Business New Zealand’s “Top 40” co-operative and mutual businesses (by revenue) and NZACU is ranked at number 28.

ENDS

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