Gain FCU Fights Nearby Lending Company Over Trademarks

Burbank, Calif.-based Gain Federal Credit Union is suing a nearby consumer lending company whose name and logo, it alleged, are too similar to the credit union’s and are causing confusion among consumers.

In its complaint filed in U.S. District Court, the credit union, which has $352 million in assets and about 21,000 members, said that Gain Credit Holdings, which operates in La Jolla, Calif., used its name and logo to purposely make people think it was Gain Federal Credit Union or that its services were tied to Gain Federal Credit Union. The credit union asked the U.S. District Court to hand over the company’s URL, as well as award punitive damages and other compensation.

“On information and belief, Gain Credit has used the infringing mark to promote its consumer lending services, which are the same services Gain FCU provides, throughout the United States and specifically within this district,” it said in the complaint. “Moreover, Gain Credit has promoted its consumer lending services via the same trade channels as Gain FCU. As a result, consumers and the public at large would reasonably and mistakenly believe and expect the services of Gain FCU and Gain Credit to come from the same source.”

The dispute extended beyond name similarity. The credit union also claimed that Gain Credit Holdings had a logo with similar design elements and took issue with its use of the domain www.gaincredit.com.

“In fact, given that the marks are nearly identical, that both Gain FCU and Gain Credit provide consumer lending services and promote their services as an alternative to more conventional or mainstream financial services, and that both maintain offices in Southern California, confusion among the public is inevitable,” the credit union added.

Gain Federal Credit Union also claimed that it previously warned Gain Credit Holdings about the trademark issue.

“Gain Credit responded by advising that it was willing to modify the infringing site and forwarded proposed changes that would make clear Gain Credit only offers commercial lending services in the United Kingdom and India,” it said. “However, as of the date of this complaint, Gain Credit has not implemented these proposed changes. Moreover, while Gain Credit indicated it was willing to make certain modifications to the infringing site, it did not indicate it was willing to cease and desist from the use of the infringing mark.”

A series of credit unions have become party to trademark litigation recently.

Last year, for example, Ohio-based The Park National Bank asked a judge for protection against Louisville, Ky.-based Park Community Credit Union, which it claimed had threatened to sue if the bank used its name or any other name starting with the word “Park” in Kentucky and Southern Indiana. That credit union has $955 million in assets and about 87,000 members.

Also last year, Meridian, Idaho-based Capital Educators Federal Credit Union and Capitol Federal Financial Inc., which does business as Capitol Federal Savings Bank, got into a trademark dispute. The credit union asked for a federal court’s blessing to continue using the term “CapEd” despite the bank’s alleged claim that the word was too similar to its own “Capfed” moniker. Capital Educators Federal Credit Union has $766 million in assets and about 80,000 members.

In addition, Los Angeles-based company LendingUSA filed a complaint against Pennsylvania State Employees Credit Union over disagreements about the similarity of its slogans. Pennsylvania State Employees Credit Union has $5.6 billion in assets and about 466,000 members.