PRESS RELEASE
Federal Deposit Insurance Corporation Each Depositor insured to at least $250,000
FOR IMMEDIATE RELEASE
May 27, 2009
Media Contact:
Jay Rosenstein (202) 898-7303
jrosenstein@fdic.gov
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-78-2009
Buyer Beware: Tips from the FDIC on How to Protect Against Foreclosure Frauds,
Easy Money Schemes and Other Costly Deals
Other Topics in the Latest FDIC Consumer News Include the Extension of $250,000 Deposit
Insurance, More About Mortgage Modification Programs, and Shopping for a CD
Many people concerned about their mortgage, their job or their finances may be
especially vulnerable to scams and other costly "fixes" for their problems. The Federal
Deposit Insurance Corporation today issued a variety of tips to help consumers be on
guard financially in the current economy. The advice was published in the Spring 2009
issue of FDIC Consumer News, the agency's quarterly newsletter for consumers.
Among the topics covered:
• Our latest tips for protecting against foreclosure rescue and loan modification
scams that target homeowners having difficulty making their monthly mortgage
payments;
• A warning about frauds promising easy money -- supposedly from the
government's economic stimulus package or from lenders or employers -- but
ending with the victims losing money instead;
• Examples of financial services that sound good but may come with heavy fees,
such as certain programs to cover overdrafts (bounced checks or other
withdrawals that would deplete a bank account) and credit cards advertised to
help repair a damaged credit history;
• Potential risks and costs associated with blank "convenience checks" that credit
card companies send to their customers offering a quick way to write a loan, pay
Federal Deposit Insurance Corporation Each Depositor insured to at least $250,000
FOR IMMEDIATE RELEASE
May 27, 2009
Media Contact:
Jay Rosenstein (202) 898-7303
jrosenstein@fdic.gov
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-78-2009
Buyer Beware: Tips from the FDIC on How to Protect Against Foreclosure Frauds,
Easy Money Schemes and Other Costly Deals
Other Topics in the Latest FDIC Consumer News Include the Extension of $250,000 Deposit
Insurance, More About Mortgage Modification Programs, and Shopping for a CD
Many people concerned about their mortgage, their job or their finances may be
especially vulnerable to scams and other costly "fixes" for their problems. The Federal
Deposit Insurance Corporation today issued a variety of tips to help consumers be on
guard financially in the current economy. The advice was published in the Spring 2009
issue of FDIC Consumer News, the agency's quarterly newsletter for consumers.
Among the topics covered:
• Our latest tips for protecting against foreclosure rescue and loan modification
scams that target homeowners having difficulty making their monthly mortgage
payments;
• A warning about frauds promising easy money -- supposedly from the
government's economic stimulus package or from lenders or employers -- but
ending with the victims losing money instead;
• Examples of financial services that sound good but may come with heavy fees,
such as certain programs to cover overdrafts (bounced checks or other
withdrawals that would deplete a bank account) and credit cards advertised to
help repair a damaged credit history;
• Potential risks and costs associated with blank "convenience checks" that credit
card companies send to their customers offering a quick way to write a loan, pay
bills or transfer another debt to their account; and
• Why an advertised interest rate on a short-term certificate of deposit (CD) that is
far above the competition could be a marketing ploy by a non-bank company
trying to sell uninsured, long-term investments that may not be in the consumer's
best interest.
The latest issue also notes that, on May 19, Congress extended the temporary federal
deposit insurance limit of $250,000 per depositor through December 31, 2013. This is
important news, especially for people who have or plan to place long-term deposits,
because the insurance limit would have reverted back to $100,000 per depositor on
January 1, 2010, if Congress did not authorize the extension.
Other timely articles describe the Obama Administration's program for lowering monthly
mortgage payments through refinancing opportunities and loan modifications; various
tips on shopping for a CD; and an FDIC legal opinion clarifying the deposit insurance
coverage of a pre-paid card if the bank holding the money for the card fails.
The Spring 2009 issue can be read or printed
at www.fdic.gov/consumers/consumer/news/cnspr09.
The goal of FDIC Consumer News is to deliver timely, reliable and innovative tips and
information about financial matters, free of charge. Current and past issues, including
special editions, are online at www.fdic.gov/consumernews.
There are two ways to subscribe to the quarterly FDIC Consumer News. To receive an
e-mail about each new issue with links to stories, go
to www.fdic.gov/about/subscriptions/index.html. To receive the newsletter in the mail,
free of charge, call the FDIC toll-free at 1-877-275-3342, send an e-mail
to publicinfo@fdic.gov or write to the FDIC Public Information Center, 3501 North
Fairfax Drive, Room E-1002, Arlington, VA 22226.
The FDIC encourages financial institutions, government agencies, consumer
organizations, educators, the media and anyone else to help make the tips and
information in FDIC Consumer News widely available. The publication may be
reprinted in whole or in part without advance permission. Organizations also may link to
or mention the FDIC Web site.
• Why an advertised interest rate on a short-term certificate of deposit (CD) that is
far above the competition could be a marketing ploy by a non-bank company
trying to sell uninsured, long-term investments that may not be in the consumer's
best interest.
The latest issue also notes that, on May 19, Congress extended the temporary federal
deposit insurance limit of $250,000 per depositor through December 31, 2013. This is
important news, especially for people who have or plan to place long-term deposits,
because the insurance limit would have reverted back to $100,000 per depositor on
January 1, 2010, if Congress did not authorize the extension.
Other timely articles describe the Obama Administration's program for lowering monthly
mortgage payments through refinancing opportunities and loan modifications; various
tips on shopping for a CD; and an FDIC legal opinion clarifying the deposit insurance
coverage of a pre-paid card if the bank holding the money for the card fails.
The Spring 2009 issue can be read or printed
at www.fdic.gov/consumers/consumer/news/cnspr09.
The goal of FDIC Consumer News is to deliver timely, reliable and innovative tips and
information about financial matters, free of charge. Current and past issues, including
special editions, are online at www.fdic.gov/consumernews.
There are two ways to subscribe to the quarterly FDIC Consumer News. To receive an
e-mail about each new issue with links to stories, go
to www.fdic.gov/about/subscriptions/index.html. To receive the newsletter in the mail,
free of charge, call the FDIC toll-free at 1-877-275-3342, send an e-mail
to publicinfo@fdic.gov or write to the FDIC Public Information Center, 3501 North
Fairfax Drive, Room E-1002, Arlington, VA 22226.
The FDIC encourages financial institutions, government agencies, consumer
organizations, educators, the media and anyone else to help make the tips and
information in FDIC Consumer News widely available. The publication may be
reprinted in whole or in part without advance permission. Organizations also may link to
or mention the FDIC Web site.