Each depositor insured to at least $250,000 per insured bank

Fall 2010

News Briefs

FDIC Creates New Division Dedicated to Consumer Protection

The FDIC Board of Directors has approved the creation of a new division dedicated to depositor and consumer protection. The new division is expected to enhance the agency's oversight of consumer law compliance and community reinvestment. The FDIC's existing work in areas such as deposit insurance education, consumer finance research, and responses to consumer inquiries and complaints will all be a part of this new organization.

"Our depositor protection and compliance examination and enforcement responsibilities are integral to our unique responsibilities as deposit insurer and supervisor of thousands of community banks," said FDIC Chairman Sheila C. Bair. "The creation of this new division emphasizes the importance we place on these responsibilities."

The new division will be called the Division of Depositor and Consumer Protection.

Nine Banks to Test "Safe Accounts" for Low-Income Consumers

The FDIC has announced the selection of nine banks to participate in a pilot program designed to evaluate the feasibility of offering safe, low-cost checking and savings accounts tailored to meet the needs of consumers who are low-income, unbanked or otherwise "underserved" by mainstream financial institutions.

Key features of the accounts are that they are largely electronic, are FDIC insured, have reasonable rates and fees, and are subject to applicable consumer protections. The transaction accounts will be "checkless" and will not charge overdraft or non-sufficient funds fees. Optional services and features also may be offered.

The case study is part of the FDIC's commitment to ensuring that all U.S. households have access to safe and affordable banking services. For more information, visit www.fdic.gov/consumers/template/.