Credit unions and other financial institutions that lack federal insurance must disclose that fact in their branches, their advertising and periodic statements, according to final rules approved today by the Federal Trade Commission.
Those institutions must also get signed acknowledgements from new depositors that they are aware that the institution isn't federally insured and if it fails the government won't reimburse them for their losses.
The commission said that such disclosures should also appear at credit union service centers and other places where "deposits are normally received," even if they are housed outside the physical location of a non-insured credit union.
The commission cited data that there are 400 credit unions, banks and savings associations without federal insurance, including 212 credit unions.
To see the rules, go to:
http://www.ftc.gov/os/2010/05/100525fdicafinalrule.pdf
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
