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Money Smart News Fall 2009
IN THIS ISSUE
Message from the FDIC
FDIC Launches Foreclosure
Prevention Initiative
New Consumer Protection
Rules for Credit Cards
Latest FDIC Consumer News
Features Credit Cards, Mort-
gages, Bank Rewards Pro-
grams and Deposit Insurance
Coverage
FDIC Advisory Committee Ex-
plores Prize-Linked Savings
and Other Outreach to Under-
served Consumers
Money Smart for Young Adults:
Success Stories and Strategies
for the School Year
Grant Opportunity from HHS
Message from the FDIC
As we enter the fall months and the approaching holiday shopping sea-
son, we will be surrounded by advertisements that encourage spending.
While financial education is important year-round, now is a particularly
ideal time for educators to inform consumers about the benefits of com-
parison shopping, the hazards of impulse buying, the importance of budg-
eting, and the need to understand the true costs of borrowing, especially
with credit cards. This edition of Money Smart News includes timely up-
dates on developments that can help reinforce those messages.
Inside we report on a new FDIC tool kit with information that can help struggling home-
owners at risk of losing their homes pursue legitimate alternatives, such as a mortgage
modification, and avoid scam artists and others who prey on people having financial
difficulties. These new resources can help homeowners as well their friends, family
members and others.
We also discuss new consumer protections for credit cards and mortgages, including
improved and more timely disclosures of terms and costs. For example, starting Febru-
ary 22, 2010, credit card issuers must provide on their monthly statements a box
showing how much the cardholder has paid in interest and in fees during the current
year, plus warnings about the high costs of only making the minimum card payment.
Included among the new rules for mortgages are requirements already in effect that
consumers must have at least seven business days between when a lender delivers or
mails the early disclosures and when the mortgage is consummated. You, as financial
educators, have a critical role to play in helping consumers know about these legal
protections -- and why they matter -- so that people will care enough to be proactive
and make good use of their new rights.
This issue of Money Smart News also reminds educators about the critical need for
people to save more money, even during difficult times. You can also read about a
new consumer brochure and video to help explain FDIC insurance coverage, as well
as discussions at an FDIC advisory committee meeting that was focused on creative
programs that encourage low- and moderate-income households to save money.
Here you can also find an update on the FDIC's Money Smart for Young Adults, intro-
duced last year and already having great success in teaching American youth about
topics like... the benefits of sticking to a budget, saving money for future needs, and
understanding the true costs of borrowing, especially with credit cards. Sounds famil-
iar, right? Check out some of our Money Smart partners' Success Stories with the 12
to 21 age group.
For help or additional information related to these or other aspects of your financial
education programs, contact your FDIC Regional Community Affairs Officer.
Sandra L. Thompson
Director
FDIC Division of Supervision and Consumer Protection
Money Smart News Fall 2009
IN THIS ISSUE
Message from the FDIC
FDIC Launches Foreclosure
Prevention Initiative
New Consumer Protection
Rules for Credit Cards
Latest FDIC Consumer News
Features Credit Cards, Mort-
gages, Bank Rewards Pro-
grams and Deposit Insurance
Coverage
FDIC Advisory Committee Ex-
plores Prize-Linked Savings
and Other Outreach to Under-
served Consumers
Money Smart for Young Adults:
Success Stories and Strategies
for the School Year
Grant Opportunity from HHS
Message from the FDIC
As we enter the fall months and the approaching holiday shopping sea-
son, we will be surrounded by advertisements that encourage spending.
While financial education is important year-round, now is a particularly
ideal time for educators to inform consumers about the benefits of com-
parison shopping, the hazards of impulse buying, the importance of budg-
eting, and the need to understand the true costs of borrowing, especially
with credit cards. This edition of Money Smart News includes timely up-
dates on developments that can help reinforce those messages.
Inside we report on a new FDIC tool kit with information that can help struggling home-
owners at risk of losing their homes pursue legitimate alternatives, such as a mortgage
modification, and avoid scam artists and others who prey on people having financial
difficulties. These new resources can help homeowners as well their friends, family
members and others.
We also discuss new consumer protections for credit cards and mortgages, including
improved and more timely disclosures of terms and costs. For example, starting Febru-
ary 22, 2010, credit card issuers must provide on their monthly statements a box
showing how much the cardholder has paid in interest and in fees during the current
year, plus warnings about the high costs of only making the minimum card payment.
Included among the new rules for mortgages are requirements already in effect that
consumers must have at least seven business days between when a lender delivers or
mails the early disclosures and when the mortgage is consummated. You, as financial
educators, have a critical role to play in helping consumers know about these legal
protections -- and why they matter -- so that people will care enough to be proactive
and make good use of their new rights.
This issue of Money Smart News also reminds educators about the critical need for
people to save more money, even during difficult times. You can also read about a
new consumer brochure and video to help explain FDIC insurance coverage, as well
as discussions at an FDIC advisory committee meeting that was focused on creative
programs that encourage low- and moderate-income households to save money.
Here you can also find an update on the FDIC's Money Smart for Young Adults, intro-
duced last year and already having great success in teaching American youth about
topics like... the benefits of sticking to a budget, saving money for future needs, and
understanding the true costs of borrowing, especially with credit cards. Sounds famil-
iar, right? Check out some of our Money Smart partners' Success Stories with the 12
to 21 age group.
For help or additional information related to these or other aspects of your financial
education programs, contact your FDIC Regional Community Affairs Officer.
Sandra L. Thompson
Director
FDIC Division of Supervision and Consumer Protection
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Money Smart News Fall 2009
FDIC Launches Foreclosure Prevention Initiative
The FDIC has produced a free tool kit of information that will help homeowners and the banking industry avoid unneces-
sary foreclosures and stop scams that promise false hope to consumers at risk of losing their homes. The tool kit in-
cludes a new FDIC brochure entitled "Is Foreclosure Knocking at Your Door?" that encourages consumers facing diffi-
culties to contact their mortgage servicer and apply for a loan modification. Find the tool kit and other resources at http://
www.FDIC.gov/foreclosureprevention.
New Consumer Protection Rules for Credit Cards
Financial educators may be interested in new consumer protections for credit cards, some of which have already been
implemented under rules from the Federal Reserve Board. For example, as of August 20, 2009, creditors must give cus-
tomers 45 days notice before increasing the Annual Percentage Rate (APR) on a credit card account (up from 15 days)
and they must mail or deliver periodic statements at least 21 days before the payment is due (an increase from 14 days).
For details about the provisions already in effect, see the FDIC Financial Institution Letter to banks. For more information
about the new credit card rules in general, including future requirements, read the Summer 2009 edition of FDIC Con-
sumer News (see the next item). These rule changes also will be reflected in the next edition of the FDIC's Money
Smart curriculum, scheduled to be available to the public in January.
Latest FDIC Consumer News Features Credit Cards, Mortgages, Bank Rewards Programs
and Deposit Insurance Coverage
New federal consumer protections for credit cards and mortgages -- including prohibitions against abusive lending prac-
tices and requirements for clearer, more timely disclosures -- will help people avoid surprises. The Summer 2009 issue
of FDIC Consumer News features key changes in the rules and what they mean for the public. Other topics include mak-
ing the most of bank rewards programs (such as credit cards that enable users to gradually accumulate cash rebates or
"points" good for free travel or merchandise), and a new FDIC brochure and video to help consumers understand their
deposit insurance coverage. The FDIC encourages financial institutions, financial educators and others to distribute the
information in FDIC Consumer News by reprinting, linking to the material, or making copies and affixing their name or
logo. Subscriptions are free. See the latest newsletter and subscription information at http://www.fdic.gov/consumers/
consumer/news/cnsum09/index.html.
FDIC Advisory Committee Explores Prize-Linked Savings and Other Outreach to Under-
served Consumers
On July 30th, the FDIC Advisory Committee on Economic Inclusion examined how prize-linked savings, such as sweep-
stakes and rewards, can be used to improve underserved consumers' access to the financial mainstream. The meeting
also featured a discussion of issues related to outreach to underserved and low- and moderate-income consumers. To
view a Webcast of the meeting, read copies of the presentations and otherwise learn more, start at http://www.fdic.gov/
news/news/press/2009/pr09128.html.
Money Smart for Young Adults: Success Stories and Strategies for the School Year
This is the second school year for Money Smart for Young Adults (MSYA), the FDIC's financial education curriculum
introduced in April 2008 for instructors to use to teach youths in the 12 to 21 age group, In this issue, Money Smart
News is sharing some early success stories as well as some strategies that can help educators reach this crucial target
audience. (Read the stories and tips.)
Grant Opportunity from HHS
The U.S. Department of Health and Human Services (HHS), an FDIC Money Smart partner, manages the Assets for
Independence (AFI) program that provides grants to nonprofit and government agencies to fund financial education and
help low-income families build assets through matched savings accounts called Individual Development Accounts. The
next grant application deadline is January 15, 2010. The AFI Resource Center is scheduling "how to" conference calls
for grant applicants and their partner financial institutions. To learn more, start at http://www.acf.hhs.gov/programs/ocs/
afi/ or call the AFI Resource Center at 1-866-778-6037.
Money Smart News Fall 2009
FDIC Launches Foreclosure Prevention Initiative
The FDIC has produced a free tool kit of information that will help homeowners and the banking industry avoid unneces-
sary foreclosures and stop scams that promise false hope to consumers at risk of losing their homes. The tool kit in-
cludes a new FDIC brochure entitled "Is Foreclosure Knocking at Your Door?" that encourages consumers facing diffi-
culties to contact their mortgage servicer and apply for a loan modification. Find the tool kit and other resources at http://
www.FDIC.gov/foreclosureprevention.
New Consumer Protection Rules for Credit Cards
Financial educators may be interested in new consumer protections for credit cards, some of which have already been
implemented under rules from the Federal Reserve Board. For example, as of August 20, 2009, creditors must give cus-
tomers 45 days notice before increasing the Annual Percentage Rate (APR) on a credit card account (up from 15 days)
and they must mail or deliver periodic statements at least 21 days before the payment is due (an increase from 14 days).
For details about the provisions already in effect, see the FDIC Financial Institution Letter to banks. For more information
about the new credit card rules in general, including future requirements, read the Summer 2009 edition of FDIC Con-
sumer News (see the next item). These rule changes also will be reflected in the next edition of the FDIC's Money
Smart curriculum, scheduled to be available to the public in January.
Latest FDIC Consumer News Features Credit Cards, Mortgages, Bank Rewards Programs
and Deposit Insurance Coverage
New federal consumer protections for credit cards and mortgages -- including prohibitions against abusive lending prac-
tices and requirements for clearer, more timely disclosures -- will help people avoid surprises. The Summer 2009 issue
of FDIC Consumer News features key changes in the rules and what they mean for the public. Other topics include mak-
ing the most of bank rewards programs (such as credit cards that enable users to gradually accumulate cash rebates or
"points" good for free travel or merchandise), and a new FDIC brochure and video to help consumers understand their
deposit insurance coverage. The FDIC encourages financial institutions, financial educators and others to distribute the
information in FDIC Consumer News by reprinting, linking to the material, or making copies and affixing their name or
logo. Subscriptions are free. See the latest newsletter and subscription information at http://www.fdic.gov/consumers/
consumer/news/cnsum09/index.html.
FDIC Advisory Committee Explores Prize-Linked Savings and Other Outreach to Under-
served Consumers
On July 30th, the FDIC Advisory Committee on Economic Inclusion examined how prize-linked savings, such as sweep-
stakes and rewards, can be used to improve underserved consumers' access to the financial mainstream. The meeting
also featured a discussion of issues related to outreach to underserved and low- and moderate-income consumers. To
view a Webcast of the meeting, read copies of the presentations and otherwise learn more, start at http://www.fdic.gov/
news/news/press/2009/pr09128.html.
Money Smart for Young Adults: Success Stories and Strategies for the School Year
This is the second school year for Money Smart for Young Adults (MSYA), the FDIC's financial education curriculum
introduced in April 2008 for instructors to use to teach youths in the 12 to 21 age group, In this issue, Money Smart
News is sharing some early success stories as well as some strategies that can help educators reach this crucial target
audience. (Read the stories and tips.)
Grant Opportunity from HHS
The U.S. Department of Health and Human Services (HHS), an FDIC Money Smart partner, manages the Assets for
Independence (AFI) program that provides grants to nonprofit and government agencies to fund financial education and
help low-income families build assets through matched savings accounts called Individual Development Accounts. The
next grant application deadline is January 15, 2010. The AFI Resource Center is scheduling "how to" conference calls
for grant applicants and their partner financial institutions. To learn more, start at http://www.acf.hhs.gov/programs/ocs/
afi/ or call the AFI Resource Center at 1-866-778-6037.