FDIC rule targets non-banks that misuse its logo

By Elise Hansen (May 17, 2022, 8:12 p.m. EDT) — The Federal Deposit Insurance Corporation on Tuesday passed a final rule aimed at cracking down on fintech companies and other non-banks that misuse the name or logo of the FDIC to misrepresent their deposit insurance.

The rule establishes how the FDIC will identify, investigate and enforce violations of the Federal Deposit Insurance Act, which prohibits deposit insurance misleading advertising. That includes cases where companies incorrectly use the FDIC name or logo to make claims about protecting customer deposits, according to the rule.

The FDIC said it has seen an increase in the number of companies misleading consumers.

“The FDIC has observed a growing number…

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