Topic: Member FDIC Disclosure
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Do our “Member FDIC” signs need to use black letters on a gold background? When ordering signs, the option of white letters on black was offered.
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We believe that “Member FDIC” signs displayed in required locations may vary the colors of the text and background, provided that customers can still recognize the sign. The official FDIC sign, as described in the FDIC’s regulations, includes “black lettering and gold background.” However, “an insured depository institution may display signs that vary from the…
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What disclosures are we required to make available on our bank’s website?
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Below is a non-exhaustive list of the disclosures and notices that you may choose to post or may be required to post on your bank’s website. This list may be incomplete depending on the products and services you offer or advertise on your website, some of which may trigger additional disclosure requirements. Privacy Notices The…
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We distribute a fee schedule for deposit accounts, and some at the bank think this fee schedule needs to include an “Equal Housing Lender” statement. We’re also wondering whether this would be required for privacy notices and disclosures — both of which we provide to both deposit and loan customers. Are these documents required to have the “Equal Housing Lender” statement? How about the “Member FDIC” disclosure?
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We do not believe that these documents need to include the “Equal Housing Lender” statement, nor do they need to include the “Member FDIC” disclosure. The Federal Reserve’s Equal Housing Lender advertising requirements apply to “any form of advertising of any loan for the purpose of purchasing, constructing, improving, repairing, or maintaining a dwelling.” Consequently,…
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Are we required to include the FDIC logo and advertising statement on a certificate of deposit (CD) prematurity notice?
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No, we do not believe that you must include the FDIC logo on CD maturity notices, but we recommend reviewing the prematurity notices to ensure that they could not be viewed as advertisements for your bank. The FDIC’s Advertisement of Membership rule requires banks to include the “Member FDIC” or “Member of FDIC” statement in…
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Do we need to display the “Member FDIC” statement on promotional items, such as mugs, can cozies, lanyards or golf shirts? Are these items “of the type or character that make it impractical to include the official advertising statement”? Some of these items are large enough to include the disclosures, but the printable or engraveable space often is tiny, and printers and other providers often tell us that the disclosures will be unreadable.
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To qualify for an exception from displaying the “Member FDIC” statement on a promotional item, it must be “impractical” to include the statement due to the “type or character” of the item. From what you have told us, your bank has a strong argument that it is impractical to include the “Member FDIC” statement due…
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Our bank donates money to various fundraising events of local organizations and clubs. In exchange, our logo is listed as a sponsor on the organizations’ websites and at the event. If our logo is posted in a group of logos of other sponsors on their website or on a banner at the event, do we need to include “Member FDIC” as part of our logo? Is this still considered a commercial message? If our logo is listed on the organization’s website, and the logo is linked to our website, do we need to include member FDIC in the logo?
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No, we do not believe that your bank is required to include the “Member FDIC” statement on third party websites and banners promoting a fundraising event, provided that your bank name or logo is featured without a tagline or other promotional language. However, if you use your bank logo and it incorporates a tagline, we…
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We would like to purchase a building that we may use for a branch someday. In the meantime the building will be empty, but we want to attach a night drop box to the outside. Can we have one employee pick up the deposits every day? We are concerned about customers claiming their deposits never made it to the bank, but we do not have a large enough staff to allow two employees to do these daily pick-ups. The deposits will not be opened and recorded until after they reach the bank. We also plan to include an ATM outside of the building next to the night drop box. We will post a sign on the side of the building with our bank’s name, along with a member FDIC statement. We will also post the funds availability schedule outside next to the night drop box. If we place a sign above the drop box and ATM that states “ATM and Night Deposit Box,” would that also require the member FDIC advertising statement?
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We are not aware of any requirement that two bank employees must pick up the night drop box deposits and deliver them to the bank. In addition, we believe your bank may adopt a policy to limit your liability for night drop box deposits until after the deposits are recorded at the bank. Under the…
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For brochure and other bank advertisements, do we have to display the FDIC logo, or can we simply print the letters “FDIC”?
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Bank advertisements should at least include the statement “Member FDIC.” Using the full FDIC logo is not required, but simply stating “FDIC” without “Member” would be insufficient. For resources related to our guidance, please see: FDIC Advertisement of Membership Rules, 12 CFR 328.3(c)(1) (“Except as provided in § 328.3(d), each insured depository institution shall include the official…
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Do we need to display the FDIC logo on everything that has our name on it â including a rib bib at a local festival that we sponsor or a brochure for a non-profit organizationâs event that we sponsor?
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Yes, we believe you are required to include the “Member of FDIC” statement on both items, subject to the discussion below. The FDIC Advertisement of Membership rules require banks to include the “Member of FDIC” or “Member FDIC” statement in advertisements, unless an exception applies. “Advertisement” is defined broadly as a commercial message that is…