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Report: FDIC Senior Officials Acted on Personal Animus against Legal Businesses (Payday Lenders)

December 12, 2014 Comments off

Report: FDIC Senior Officials Acted on Personal Animus against Legal Businesses
Source: U.S. House of Representatives, Committee on Oversight and Government Reform

The House Oversight and Government Reform Committee today released a new report, “Federal Deposit Insurance Corporation’s (FDIC) Involvement in ‘Operation Choke Point’,” detailing the agency’s close relationship with the Department of Justice (DOJ) to effectively target legal businesses the administration deemed morally objectionable. Documents produced to the Committee reveal that the DOJ actively partnered with the FDIC in the prosecution of Operation Choke Point. FDIC’s participation in Operation Choke Point included requests for information about the investigation, discussions of legal theories and the application of banking laws, and the review of documents involving FDIC-supervised institutions obtained by DOJ in the course of its investigation. FDIC also originated the list of “high risk” industries included in the DOJ subpoenas. Documents provided to the Committee also show that senior leadership at the FDIC opposed certain industries on purely moral grounds.

Documents produced to the Committee reveal that senior FDIC policymakers oppose payday lending on personal grounds, and attempted to use FDIC’s supervisory authority to prohibit the practice. Personal animus towards payday lending is apparent throughout the documents produced to the Committee. Emails reveal that FDIC’s senior-most bank examiners “literally cannot stand payday,” and effectively ordered banks to terminate all relationships with the industry.

FDIC Releases National Survey of Unbanked and Underbanked; Unbanked Households Decline to 9.6 Million

December 8, 2014 Comments off

FDIC Releases National Survey of Unbanked and Underbanked; Unbanked Households Decline to 9.6 Million
Source: Federal Deposit Insurance Corporation

The Federal Deposit Insurance Corporation (FDIC) today released the results of the 2013 FDIC National Survey of Unbanked and Underbanked Households, the most comprehensive survey on the subject in the United States. The survey indicates that the proportion of unbanked households declined from 8.2 percent in 2011 to 7.7 percent in 2013, while the share of underbanked households remained essentially unchanged at 20.0 percent. The decrease in the proportion of the unbanked can be explained by improving economic conditions and the changing demographic composition of households.

The survey, conducted every two years by the FDIC in partnership with the U.S. Bureau of the Census, provides the banking industry and policy makers with insights and guidance on the demographics and needs of the unbanked and underbanked.

New to the 2013 survey are questions related to how consumers access their bank accounts. Nearly two out of three households primarily used bank tellers or on-line banking when accessing their accounts. These banking methods, along with ATMs, were also the primary methods underbanked households used to access their account. Notably, underbanked households, however, were more likely to use mobile banking devices relative to other groups: 29.2 percent of underbanked households used mobile devices to access their account compared to 21.7 percent of fully banked households.

FDIC Announces a Quick Guide for Consumers on Credit, Debit and Prepaid Cards

March 9, 2012 Comments off

FDIC Announces a Quick Guide for Consumers on Credit, Debit and Prepaid Cards
Source: Federal Deposit Insurance Corporation

In observance of National Consumer Protection Week 2012 (NCPW), the FDIC has issued a guide to help consumers understand the differences between debit, credit and prepaid cards. The guide is intended to help consumers, who routinely use cards to pay for goods and services but who don’t always understand the differences in how these cards work or the applicable consumer protections. The quick guide and an accompanying list of 10 things to know about credit, debit and prepaid cards can be found at www.fdic.gov/ncpw.

FDIC Consumer News — Spring 2011 — Special Edition: Shop and Save…at the Bank

July 21, 2011 Comments off

FDIC Consumer News — Spring 2011 — Special Edition: Shop and Save…at the Bank
Source: Federal Deposit Insurance Corporation

Getting a mortgage, checking account, or credit card with the most favorable terms is like finding a good deal on anything else: you better shop around. But knowing what to look for in an escrow account or overdraft program isn’t like trying on shoes. Bank products come with confusing terms, fine print, and potentially hefty obligations. A quick read that will put you on the right track is the short (8-page), free Spring 2011 issue of FDIC Consumer News: Shop and Save…at the Bank: A Buyer’s Guide to the Right Loan, Credit Card or Deposit Account.

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