CFPB takes steps to protect depositors from misrepresentation regarding FDIC insurance


washington d.c. – The Consumer Financial Protection Bureau (CFPB) today issued an enforcement memorandum that addresses prohibited practices on insurance claims from the Federal Deposit Insurance Corporation (FDIC). Specifically, companies may not misuse the FDIC name or logo or make misleading statements about deposit insurance. The issue has taken on renewed importance with the emergence of financial technologies – such as crypto-assets, including stablecoins – and the risks faced by consumers if they are attracted to these or other financial products or services. through false statements or false advertisements.

“People know and trust the name and logo of the FDIC, and companies should not take advantage of that trust by making misleading claims about deposit insurance,” CFPB Director Rohit Chopra said. “Companies undermine competition, erode confidence in the deposit insurance system, and threaten our hard-earned economies when they engage in false marketing or advertising.”

The Consumer Financial Protection Act prohibits deceptive acts and practices, including misleading representations involving the FDIC or deposit insurance name or logo, by covered businesses. Deposit insurance has long been a means of promoting confidence in the banking system, and the misrepresentation of these protections undermines consumer confidence and market competition. The most common form of deposit insurance is administered by the FDIC. Currently, the FDIC insures deposits at FDIC-insured banks and savings associations up to $250,000 per depositor, per FDIC-insured bank, for each category of account ownership.

the Circular on consumer financial protection released today provides guidance to consumer protection officials who covered companies that may violate the Consumer Financial Protection Act’s prohibition against deception if they misuse the FDIC name or logo or engage in false advertising or making false statements to the public about deposit insurance, whether or not such conduct (including misrepresentation of insured status) is knowingly committed. The Consumer Financial Protection Act is enforced by the CFPB, banking regulators and states.

More specifically, the Circular points out that:

  • A misrepresentation of the FDIC logo or name will generally be a material misrepresentation. Material misrepresentation is a deceptive practice in violation of consumer financial protection law. Representations made by Covered Businesses to consumers regarding FDIC coverage will generally be material. Misuse of the FDIC name or logo or participation in false advertising or misrepresentation to consumers about deposit insurance, whether or not such conduct is knowingly committed, is likely to be misleading.
  • Misrepresentation or misuse of the FDIC name or logo harms customers and exposes them to significant risk of unexpected losses. Clients may be at risk of loss if they discover that their assets are uninsured during a period of financial hardship. Due to their relatively recent entry into the consumer market, emerging financial products and services, such as digital assets, including crypto-assets, can pose particularly acute risks to consumers. Claims that financial products or services are “regulated” by the FDIC or “insured” or “eligible” for FDIC insurance are likely misleading if such claims expressly or implicitly state that the product or service is FDIC insured. when in fact this is not the case. Case.
  • Misuse of the FDIC name or logo harms honest businesses. A Covered Business misleadingly advertising that its products or services are FDIC-insured may persuade individuals to purchase that business’s products or services when individuals may have otherwise selected similar products or services from one of company’s competitors engaged in honest advertising and marketing.

the Circular on consumer financial protection was issued in connection with the FDIC’s passage of a rule implementing a statutory provision that prohibits any person or organization from engaging in false advertising or misusing the name or logo of the FDIC and to make false statements about the scope or terms of FDIC deposit insurance. The CFPB will exercise its powers to ensure that the public is protected from the risks and harms that arise when companies misuse the FDIC logo or name or make misleading misrepresentations about deposit insurance, whether these misrepresentations are made knowingly or not.

Read the statement from CFPB Director Chopra, FDIC Board Member, on the final rule regarding false advertising, misrepresentation of insured status, and misuse of the FDIC name or logo.

read today Circular on consumer financial protection, Misleading representations involving the name or logo of the FDIC or deposit insurance.

Read the CFPB blog, CFPB launches new system to promote consistent application of consumer financial protectionsto learn more about Consumer financial protection circulars.

Consumers may submit complaints about deposit products or other consumer financial products or services by visiting the CFPB website or by calling (855) 411-CFPB (2372).


The Consumer Financial Protection Bureau is a 21st century agency that implements and enforces federal consumer finance law and ensures that markets for consumer financial products are fair, transparent and competitive. For more information, visit


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