Credit unions and other financial institutions that lack federalinsurance must disclose that fact in their branches, theiradvertising and periodic statements, according to final rulesapproved today by the Federal Trade Commission.
|Those institutions must also get signed acknowledgements fromnew depositors that they are aware that the institution isn'tfederally insured and if it fails the government won't reimbursethem for their losses.
|The commission said that such disclosures should also appear atcredit union service centers and other places where "deposits arenormally received," even if they are housed outside the physicallocation of a non-insured credit union.
|The commission cited data that there are 400 credit unions,banks and savings associations without federal insurance, including212 credit unions.
|To see the rules, go to:
http://www.ftc.gov/os/2010/05/100525fdicafinalrule.pdf
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