How to Find Records on Failed Banks

First place to start:
http://www.fdic.gov/bank/individual/failed/banklist.html

If the failed bank was regulated by the State, check with the State’s financial/banking office for stored records. In Florida anyway, that would be through the office of the Chief Financial Officer, an elected Cabinet position under whom someone is appointed to oversee state regulated banking institutions.

 

GAO Mortgage Foreclosures Report

The Government Accountability Office (GAO) has released a report urging the new Consumer Financial Protection Bureau to make mortgage servicing standards a priority.

http://www.gao.gov/new.items/d11433.pdf



FDIC, Federal Reserve, Office of the Comptroller of the Currency, and Office of Thrift Supervision, which culminated in enforcement actions against the nation’s 14 largest mortgages servicers and two third-party vendors, with monetary penalties still pending.
http://www.dsnews.com/articles/regulators-hand-down-enforcement-actions-to-servicers-and-their-vendors-2011-04-13

FDIC Report Highlights Review of Foreclosure Practices

http://www.fdic.gov/regulations/examinations/supervisory/insights/sise11/SI_SE2011.pdf
The Special Foreclosure Edition of Supervisory Insights, released today, highlights lessons learned from an interagency horizontal review of the 14 largest residential mortgage servicers. This review resulted in Consent Orders with all entities reviewed. 
To date, FDIC reviews of state nonmember banks have not identified instances of "robo-signing" or other serious deficiencies in mortgage servicing operations. Nevertheless, any bank involved in residential mortgage servicing can benefit from understanding the issues identified in the interagency review. To help institutions minimize their legal and reputational risks, this Special Foreclosure Edition provides examples, derived from the lessons learned, of effective residential mortgage servicing practices.

"The best practices outlined in this publication provide important suggestions for avoiding pitfalls in servicing mortgage loans," said FDIC Chairman Sheila C. Bair. "We encourage all residential mortgage servicers to read the article and consider the best practices as they review their own servicing operations."

Supervisory Insights provides a forum for discussing how bank regulation and policy are put into practice in the field, sharing best practices, and communicating about the emerging issues that bank supervisors face. The journal is available on the FDIC's Web site at http://www.fdic.gov/regulations/examinations/supervisory/insights/sise11/index.html. Suggestions for future topics and requests for permission to reprint articles should be e-mailed to supervisoryjournal@fdic.gov. Requests for print copies should be e-mailed to publicinfo@fdic.gov

FDIC Statement on Enforcement Orders Against Large Servicers Related to Foreclosure Practices

FDIC Statement on Enforcement Orders Against Large Servicers Related to Foreclosure Practices




FOR IMMEDIATE RELEASE

April 13, 2011 Media Contact:

Andrew Gray (202) 898-7192

Email: angray@fdic.gov

The Federal Deposit Insurance Corporation (FDIC) today issued the following statement commenting on the enforcement orders against large servicers related to their foreclosure practices:

"Today, the three primary federal regulators of the nation's 14 largest mortgage servicers published final enforcement orders against these institutions based on the findings of a review of their foreclosure policies and practices. While the FDIC is not the primary federal regulator for any of the largest mortgage servicers, the FDIC participated in this interagency horizontal review, at the invitation of the primary regulators, as the back-up regulator to protect the interests of the deposit insurance fund and to provide resources and support for this important review. The FDIC was also a signatory to one of the orders as the primary federal regulator of an insured depository whose loans were serviced by an affiliated servicer under the holding company. The effect of this order is to require the bank to ensure that its affiliated servicer takes corrective measures to fully address deficiencies identified in the interagency review."

"The findings of the interagency review clearly show that the largest mortgage servicers had significant deficiencies in numerous aspects of their foreclosure processing. These deficiencies included the filing of inaccurate affidavits and other documentation in foreclosure proceedings (so-called "robo-signing"), inadequate oversight of attorneys and other third parties involved in the foreclosure process, inadequate staffing and training of employees, and the failure to effectively coordinate the loan modification and foreclosure process to ensure effective communications to borrowers seeking to avoid foreclosures. The interagency review was limited to the management of foreclosure practices and procedures, and was not, by its nature, a full scope review of the loan modification or other loss-mitigation efforts of these servicers. A thorough regulatory review of loss mitigation efforts is needed to ensure processes are sufficiently robust to prevent wrongful foreclosure actions and to ensure servicers have identified the extent to which individual homeowners have been harmed."

"In its role as the primary federal regulator of a large number of state nonmember banks, which collectively service less than four percent of residential mortgages, the FDIC has been reviewing and conducting targeted exams to determine whether any of these institutions have engaged in the types of practices identified at the major servicers. To date, the review has not identified "robo-signing" or any other deficiencies that would warrant formal enforcement actions. The FDIC will continue to monitor these servicers, as well as the performance of institutions servicing loans through FDIC securitizations or resolution programs."

"The enforcement orders incorporate some important requirements that, if fully implemented, will help prevent a recurrence of the serious problems with foreclosure processing revealed by the regulators' review. In particular, the FDIC supports the inclusion in these orders of a single point of contact for homeowners to give homeowners a single person to work with throughout the stressful and often confusing loan modification and foreclosure process. Assigning a single point of contact will also provide for greater servicer employee accountability and, as such, will serve as an important quality control to ensure that modification and foreclosure activity are conducted in full compliance with applicable federal and state laws. Having a single point of contact will not prevent all foreclosures, but it will reduce the numbers of avoidable foreclosures as well as operational risks associated with foreclosure processes that violate the servicers' legal obligations. It is essential that the implementation of the orders require specific, measurable actions of these servicers to address the deficiencies identified in the interagency review. The FDIC will continue to work with the primary federal regulators of these servicers to promote this result."

"The enforcement orders issued today are important, but they are only a first step in setting out a framework for these large institutions to remedy these deficiencies and to identify homeowners harmed as a result of servicer errors. While today's orders put these large servicers on a path to improving their management of the foreclosure process, they do not purport to fully identify and remedy past errors in mortgage-servicing operations of large institutions. Much work remains to ensure that the servicing process functions effectively, efficiently, and fairly going forward. Importantly, these enforcement orders do not contain monetary remedial measures. There is evidence that some level of wrongful foreclosures has occurred. It is important that servicers identify any harmed homeowners and provide appropriate remedies. This is essential to managing litigation and reputation risk, as well as fairness to borrowers. In addition, the FDIC continues to fully support the separate federal and state collaboration between the State Attorneys General and federal regulators led by the U.S. Department of Justice. The enforcement orders announced today complement, rather than preempt or impede, this ongoing collaboration."

# # #
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 7,657 banks and savings associations and 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-69-2011

Geithner Backs New Financing Approach for Mortgages

Treasury Secretary Timothy F. Geithner yesterday backed legislative efforts to create a new market for financing mortgages that would help wean the $10.6 trillion U.S. mortgage market from government support, Reuters reported yesterday. Geithner testified before the Senate Banking Committee that he endorsed efforts to create a market for covered bonds, which are securities issued by banks and backed by pools of loans. That is different from the current mortgage system, in which lenders sell many of the loans they make to Fannie Mae and Freddie Mac, which then repackage them as securities for investors. The Federal Deposit Insurance Corp. has warned that a covered bond system could put its bank deposit insurance fund at increased risk for losses because the investors would have seniority over the agency in the event of default. Geithner said such concerns were legitimate and would have to be worked out.
http://banking.senate.gov/public/index.cfm?FuseAction=Hearings.Hearing&Hearing_ID=482a3e7b-b029-4711-8881-b2dad0b2f1b3

In related news, the Obama administration issued two veto warnings yesterday on bills to kill government housing programs that Republicans plan to take up in the House today, CongressDaily reported today. The bills would end the administration's main modification program, the Home Affordable Modification Program, and eliminate $1 billion remaining in the Neighborhood Stabilization Program, a program for rehabilitating foreclosed homes. The bills are expected to pass the House but are unlikely to be taken up in the Senate, where Democrats have largely sought to improve foreclosure-mitigation efforts rather than abandon them.

FDIC Releases Details on Its Liquidation Authority

The board of the Federal Deposit Insurance Corp. is offering more details on how it plans to treat certain creditor claims under its new authority to liquidate failed nonbank financial institutions, including when the FDIC will seek to claw back compensation of executives and directors, the Deal Pipeline reported today. In one new element approved yesterday, a company's receiver could seek up to two years of compensation from executives and directors who are "substantially responsible" for the financial condition of a failed company. While the receiver would have to consider whether lower level executives performed their responsibilities with the requisite degree of skill and care, and whether they caused a loss that materially contributed to the failure, it would be far easier to get clawback from top executives and board chairmen. The Dodd-Frank Act allows for the FDIC to be appointed receiver for a financial company if the entity's failure cannot be dealt with under the U.S. Bankruptcy Code without posing significant risk to U.S. financial stability.

Colonial Cites AmTrust Ruling As Support in Fight with FDIC

Colonial BancGroup Inc. said that a recent ruling by a U.S District Court judge in Ohio involving a dispute between the FDIC and AmTrust Financial Corp. supports a bankruptcy judge's ruling in its favor last year in a similar dispute, Dow Jones Daily Bankruptcy Review reported today. Both Colonial and AmTrust were bank-holding companies whose banking subsidiaries failed in 2009 and were taken over by the FDIC. In both cases, the parents both filed for chapter 11 and have been sparring with the FDIC over commitments the holding companies made to regulators to shore up the bank's capital. In a closely watched decision last year in Colonial's chapter 11 case, Bankruptcy Judge Dwight H. Williams Jr. rejected the FDIC's bid to go after the parent for failure to maintain capital levels at the bank. In AmTrust's case, which involves a similar dispute with the FDIC, U.S. District Judge Donald Nugent pointed to the Colonial bankruptcy court decision and concluded the commitments at issue constituted promises to help reach a goal, namely to prop up the bank, but not guarantees the goal would be reached.

FDIC Announces "Top 10" List of Online Resources for Consumers

Consumers of all ages are increasingly turning to the Internet for help with managing their finances, but knowing where to go online for reliable, practical money tips can be challenging. That's why the Federal Deposit Insurance Corporation has compiled a "Top 10" list of FDIC online resources for consumers on subjects ranging from deposit insurance to shopping for a bank account and avoiding financial fraud.


"FDIC.gov is a great starting point to learn about shopping for a bank account, maintaining a budget, building savings and avoiding financial scams," said FDIC Chairman Sheila C. Bair. "We encourage everyone to check out our Top 10 list and the many other online resources for consumers from the FDIC."

The FDIC's Top 10 list was announced today in observance of National Consumer Protection Week 2011 (NCPW), which is March 6-12. The FDIC home page is www.fdic.gov, but the Top 10 list is featured on a special page for NCPW at www.fdic.gov/consumers/consumer/information/ncpw/index.html.

Chairman Bair added: "The FDIC also is proud to be one of the organizing partners of National Consumer Protection Week and to support this year's theme of focusing on the importance of consumer access to practical financial information on the Internet."

Here are the 10 FDIC online resources the agency is encouraging consumers to use:

• "EDIE," the FDIC's Electronic Deposit Insurance Estimator: An online calculator that assists consumers and businesses in determining their deposit insurance coverage for each FDIC-insured bank where they have deposit accounts. EDIE also provides a printable report showing whether those deposits are fully protected or if some exceed the federal limits.

• FDIC Consumer News: The FDIC's quarterly publication for consumers offers information and tips on credit cards, bank accounts, loans, scams, money management, and much more. Consumers can also listen to articles anywhere, anytime online or by downloading to an MP3 player.

• Bank Find: Our online directory that consumers can use to locate an FDIC-insured institution, learn what happened to a bank that changed names or no longer exists, and more.

• Customer Assistance Form: An easy-to-use form to submit a question to the FDIC or a complaint regarding a financial institution. Of course, consumers with questions or concerns can also call the FDIC toll-free at 1-877-ASK-FDIC, which is 1-877-275-3342.

• Consumer Alerts: Warnings about financial frauds and scams.

• Small Business Web Page: Useful information for small businesses, especially regarding access to loans, plus an online form to ask the FDIC a question or register a concern.

• The FDIC YouTube Channel: Videos on topics such as deposit insurance and Internet fraud and messages from FDIC Chairman Bair.

• Money Smart: A financial education curriculum concentrating on the development of consumers' financial skills and positive banking relationships.

• Foreclosure Prevention Toolkit: A Web page that provides easy access to helpful information for homeowners on avoiding foreclosure and foreclosure "rescue" scams.

• E-mail updates: Sign up to receive e-mail notices of each new issue of FDIC Consumer News, Consumer Alerts, and other announcements and publications from the FDIC. Consumers can also follow the FDIC on Twitter and Facebook.

# # #

Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 7,657 banks and savings associations and 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-52-2011

FDIC Tips

A Consumer Message from FDIC Chairman Bair for America Saves Week


This is America Saves Week. But it’s hard to talk about putting money away during these tough economic times, let alone actually doing it.

The good news is that even as we are working to dig out of the recent recession, Americans are finding ways to save more money. The recent financial crisis has wreaked economic havoc on a lot of families. But if there is one silver lining, it is that we have learned the hard lessons of too much borrowing. We are paying down our debt and saving more. In the process, we are rediscovering the peace of mind of financial security achieved through saving.

It doesn’t have to be hard to find $10 a week to save. Do you buy your lunch every day when you’re at work? Instead, make a sandwich or salad at home and bring it into the office once or twice a week. Or skip your afternoon snack from the vending machine.

Eventually, this savings can add up to a lot. If you put $10 every week into a savings account and even if it earns only 1 percent interest, you will have more than $2,600 in five years, $5,400 in 10 years, and more than $11,500 in 20 years – perhaps just when you are ready to retire or need that money to send a child off to college. Compare this to just making minimum payments on a credit card balance of $5,000. Paying an interest rate of 15 percent, it would take 24 years to repay the balance, and you would pay more than $7,000 in interest to your credit card company.

There are easy ways to make saving automatic. Open up a savings account if you don’t already have one and have a portion of your paycheck deposited directly into that account. Or ask your bank to regularly transfer a set amount of money from your checking account into the savings account. You can even have your tax refund directly deposited into your savings account.

Help your children save more, too. When you give them their allowance, pay them a little extra – say a quarter or 50 cents -- to put straight into their piggy banks. That way you will teach them the value of saving automatically. Buy them a clear plastic piggy bank or some other transparent container so they can watch their quarters pile up and grow. After they’ve accumulated several dollars, take that money to the bank and put it in a safe, FDIC-insured bank account. Many banks offer savings accounts just for kids with no fees and no minimum-balance requirements.

By allowing children to accrue savings and earn interest from an early age, children’s savings accounts can finance much of a child’s college education. Studies show that even a small amount of savings significantly influences a child’s desire to attend college. Moreover, built up over time, children’s savings accounts can reduce reliance on student loans and ease young people’s financial burden. Tragically, last year, college graduates started out in life owing an average of $24,000 in student debt.

We owe it to ourselves and to our kids to have the peace of mind of a secure financial future. Let’s budget, save and spend responsibly. Who knows? Maybe the government will get the same idea and stop spending and borrowing so much, too.

During this America Saves Week, I encourage all Americans to join me and my family in making a renewed savings commitment. Let’s resolve to maintain that commitment throughout the years to come.

FDIC NEWS

Ms. Sheila C. Blair, Chairman, Federal Deposit Insurance Corporation gave a comprehensive statement regarding the status of the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act to the Committee on Banking, Housing, and Urban Affairs, U.S. Senate; 538 Dirksen Senate Office Building, Washington D.C.


http://www.fdic.gov/news/news/speeches/chairman/spfeb1711.html

FDIC News

America Saves Week (February 20–27) is a chance for organizations and professionals to make a concerted effort to help individuals take positive steps to reach their savings goals. Visit http://www.americasavesweek.org/ to learn more, including ways to get involved. 


National Consumer Protection Week (March 6-12) brings together government and non-profit organizations to help consumers learn how to protect their privacy, manage their money, decipher advertising messages, and steer clear of fraud and scams.  Visit http://www.ncpw.gov/ for details and materials, including a toolkit and outreach ideas.

FDIC MAY HAVE STRICTER SERVICING RULES IN THE WORKS FOR BANKS

Reports have surfaced that the FDIC is contemplating stricter requirements that would force banks to disclose what potential ramifications a loan modification on a first lien they service would have on an underlying lien. Industry analysts have speculated that servicers may be reluctant to modify a primary loan because the bank that services the loan also holds the second lien. Such an arrangement could be considered a conflict of interest and prompts some to wonder if investors would be swayed if they knew of the arrangement beforehand.

http://www.dsnews.com/articles/fdic-may-have-stricter-servicing-rules-in-works-for-banks-2011-01-11

New Rules for Gift Cards

New Federal Reserve rules provide important protections when you purchase or use gift cards. Here are some key changes that apply to gift cards sold on or after August 22, 2010:

Covered by the new rules

Store gift cards, which can be used only at a particular store or group of stores, such as a book store or clothing retailer.

Gift cards with a MasterCard, Visa, American Express, or Discover brand logo. These cards generally can be used wherever the brand is accepted. (Not all cards with a brand logo are covered; see "Other prepaid cards" below for exceptions.)
New protections

Limits on expiration dates. The money on your gift card will be good for at least five years from the date the card is purchased. Any money that might be added to the card at a later date must also be good for at least five years.

Replacement cards. If your gift card has an expiration date you still may be able to use unspent money that is left on the card after the card expires. For example, the card may expire in five years but the money may not expire for seven. If your card expires and there is unspent money, you can request a replacement card at no charge. Check your card to see if expiration dates apply.

Fees disclosed. All fees must be clearly disclosed on the gift card or its packaging.

Limits on fees. Gift card fees typically are subtracted from the money on the card. Under the new rules, many gift card fees are limited. Generally, fees can be charged if

you haven't used your card for at least one year, and

you are only charged one fee per month.

These restrictions apply to fees such as:

-dormancy or inactivity fees for not using your card,

-fees for using your card (sometimes called usage fees),

-fees for adding money to your card, and maintenance fees.

You can still be charged a fee to purchase the card and certain other fees, such as a fee to replace a lost or stolen card. Make sure you read the card disclosure carefully to know what fees your card may have.

Other prepaid cards

These new rules apply only to gift cards, which are just one type of prepaid card. The new rules do not cover other types of prepaid cards, such as:

Reloadable prepaid cards that are not intended for gift-giving purposes. For example, a reloadable prepaid card with a MasterCard, Visa, American Express, or Discover brand logo that is intended to be used like a checking account substitute is not covered.

Cards that are given as a reward or as part of a promotion. For example, a free $15 gift card given to you by a store if you purchase merchandise or services of $100 or more may have fees or an expiration date of one year rather than five years. Regardless, you must be clearly informed of any expiration dates or fees for these cards.

http://www.federalreserve.gov/consumerinfo/wyntk_giftcards.htm

FDIC PROPOSES TO BOOST FAILURE ASSESSMENTS ON LARGE BANKS

http://www.bloomberg.com/news/2010-11-09/fdic-proposes-higher-assessments-for-big-banks-to-protect-against-failures.html

The Federal Deposit Insurance Corp. (FDIC) today proposed shifting the burden for protecting depositors against bank failures toward larger lenders whose reliance on riskier funding sources may pose a greater threat to the financial system, Bloomberg News reported today. The FDIC board today approved two proposals for overhauling assessments for its deposit insurance fund, including one that would base the fees on banks’ liabilities rather than their domestic deposits. The fee proposal, a response to the Dodd-Frank financial-regulation law, would increase assessments on banks with more than $10 billion in assets. “This proposal achieves the goals of the Dodd-Frank Act to change the assessment base to better reflect risks to the deposit insurance fund,” said FDIC Chairman Sheila Bair. The measure is subject to a 45-day comment period.


In related news, the FDIC said that the number of bank failures in 2010 eclipsed the total bank failures seen last year as regulators announced the closure of four banks Friday amid continued weakness in the U.S. economy, Dow Jones Daily Bankruptcy Review reported today. The FDIC yesterday announced the failures of banks in Maryland, California and Washington for a total of 143 bank failures so far this year. In 2009, 140 banks failed. Specifically, regulators closed the K Bank of Randallstown, Md., Western Commercial Bank of Woodland Hills, Calif., First Vietnamese American Bank of Westminster, Calif. and Pierce Commercial Bank of Tacoma, Wash. All of the banks are being purchased by other banks. The FDIC estimates that the cost of the four bank failures to the Deposit Insurance Fund will be about $255 million.

Telemarket Scams

Automatic Debit Scams


Fraudulent telemarketers have found yet another way to steal your money, this time from your checking account. Consumers across the country are complaining about unauthorized debits (withdrawals) from their checking accounts.



Automatic debiting of your checking account can be a legitimate payment method; many people pay mortgages or make car payments this way. But the system is being abused by fraudulent telemarketers. Therefore, if a caller asks for your checking account number or other information printed on your check, you should follow the same warning that applies to your credit card number - do not give out checking account information over the phone unless you are familiar with the company and agree to pay for something. Remember, if you give your checking account number over the phone to a stranger for "verification" or "computer purposes," that person could use it to improperly take money from your checking account.



How The Scam Works

You either get a postcard or a telephone call saying you have won a free prize or can qualify for a major credit card, regardless of past credit problems. If you respond to the offer, the telemarketer often asks you right away, "Do you have a checking account?" If you say "yes," the telemarketer then goes on to explain the offer. Often it sounds too good to pass up.



Near the end of the sales pitch, the telemarketer may ask you to get one of your checks and to read off all of the numbers at the bottom. Some deceptive telemarketers may not tell you why this information is needed. Other deceptive telemarketers may tell you the account information will help ensure that you qualify for the offer. And, in some cases, the legitimate telemarketer will honestly explain that this information will allow them to debit your checking account.



Once a telemarketer has your checking account information, it is put on a "demand draft," which is processed much like a check. The draft has your name, account number, and states an amount. Unlike a check, however, the draft does not require your signature. When your bank receives the draft, it takes the amount on the draft from your checking account and pays the telemarketer's bank. You may not know that your bank has paid the draft until you receive your bank statement.



What You Can Do To Protect Yourself

It can be difficult to detect an automatic debit scam before you suffer financial losses. If you do not know who you're talking to, follow these suggestions to help you avoid becoming a victim:



Don't give out your checking account number over the phone unless you know the company and understand why the information is necessary.

If someone says they are taping your call, ask why. Don't be afraid to ask questions.

Companies do not ask for your bank account information unless you have expressly agreed to this payment method.

IT'S THE LAW: Since December 31, 1995, a seller or telemarketer is required by law to obtain your verifiable authorization to obtain payment from your bank account. That means whoever takes your bank account information over the phone must have your express permission to debit your account, and must use one of three ways to get it. The person must tell you that money will be taken from your bank account. If you authorize payment of money from your bank account, they must then get your written authorization, tape record your authorization, or send you a written confirmation before debiting your bank account. If they tape record your authorization, they must disclose, and you must receive, the following information:



The date of the demand draft;

The amount of the draft(s);

The payor's (who will receive your money) name;

The number of draft payments (if more than one);

A telephone number that you can call during normal business hours; and

The date that you are giving your oral authorization.

If a seller or telemarketer uses written confirmation to verify your authorization, they must give you all the information required for a tape recorded authorization and tell you in the confirmation notice the refund procedure you can use to dispute the accuracy of the confirmation and receive a refund.



What To Do If You Are A Victim

If telemarketers cause money to be taken from your bank account without your knowledge or authorization, they have violated the law. If you receive a written confirmation notice that does not accurately represent your understanding of the sale, follow the refund procedures that should have been provided and request a refund of your money. If you do not receive a refund, it's against the law. If you believe you have been a victim of fraud, contact your bank immediately. Tell the bank that you did not okay the debit and that you want to prevent further debiting. You also should contact your state Attorney General. Depending on the timing and the circumstances, you may be able to get your money back.



For More Information

The FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. Watch a new video, How to File a Complaint, at ftc.gov/video to learn more. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.



Thank you FDIC

Financing the American Dream

http://www.fdic.gov/news/news/speeches/chairman/spoct2510.html

Please open the link provided herein-below to view the remarks contained in the keynote address by FDIC Chairman Sheila C. Bair to the Mortgages and the Future of Housing Finance Symposium sponsored by the Federal Deposit Insurance Corporation and the Federal Reserve System in Arlington, VA delivered on October 25, 2010.

FDIC in the News

http://www.fdic.gov/news/news/speeches/chairman/spsep3010.html

The statement of Sheila C. Bair, Chairman, Federal Deposit Insurance Corporation on Implementing the Dodd-Frank Wall Street Reform and Consumer Protection Act before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate; 538 Dirksen Senate Office Building, delivered this morning. September 30, 2010.  

Bank Charges

Your bank may deduct money from your account under certain circumstances. Suppose you have an auto loan with the same bank where you have a checking account. If you don't make a monthly loan payment, the bank may be able to deduct the payment from your deposit account. The bank's right to divert money to cover a debt is governed by state law, which can vary significantly from state to state. If your bank has the right to take funds to cover money you owe the institution, this right is probably noted in your loan contract. Some state laws require the bank to give you advance notice before taking the loan payment; others don't.


There also are times when a court will order a bank to freeze a customer's account so that funds can be used to pay another creditor or for child-support or back taxes. In these situations, the customer will be notified before any money is transferred out of the bank, so that he or she has a chance to contest the matter in court.

A court also can order your bank to open your safe deposit box. Robert Patrick, another FDIC consumer law attorney in Washington, says this often occurs if the person renting the box dies and the executor of the estate doesn't have access to the box. Other examples, according to Patrick: If law enforcement authorities convince a judge that the box contains evidence of a crime. If someone claiming you owe money gets a court order to see whether the box contains anything of value. ("Of course, you'd first have the opportunity to show the contents of the box voluntarily," adds Patrick.) Finally, the bank may need to open the box to turn unclaimed property over to the state, in much the same way that dormant savings and checking accounts are handled.

http://www.fdic.gov/consumers/consumer/news/cnfall00/diduknw.html