FDIC-Insurance Status Representation
Using a new approach to issuing enforcement edicts – a circular – the CFPB has made use of its controversial decision to bring nonbanks under its ambit to bolster the FDIC’s efforts to enhance consumer understanding of which funds are entrusted to FDIC-insured depositories and which may be at greater risk in other hands. Even inadvertent violations that may suggest FDIC insurance where it does not apply could result in significant legal risk under either federal or state action.