With the news of two large U.S. banks closing last week, everyone is asking if their money is safe and how to protect themselves and their money when it comes to banking. The answer is not simple, but we know that banks have stringent privacy policies to protect against fraud and are held to high regulatory standards to meet both state and federal mandates. In addition, the federal government provides institutions with protection against bank failure and theft.
As a consumer, the most important thing is to be educated! It is essential to know your rights, understand your bank's policies and stay informed on how to keep your personal and financial information safeguarded against scams.
Consumers can choose what bank to use, where to apply for a loan, and where to keep their savings, but you must ask questions and make informed decisions. Ask yourself some of these questions about your bank: Is there a minimum balance requirement? Do you know what fees they charge? What services do they offer, like online bill payment or a mobile app? What is the interest they pay for savings accounts? Also, consumers should read and understand all terms and conditions of their account(s). Any time you receive a notice that your bank has updated its terms and conditions by mail or email, you must read and understand them. The updates often indicate that if you continue to use the account(s) after a specific date, you automatically agree and accept the new terms and conditions.
The Consumer Financial Protection Bureau (CFPB) is a valuable source of financial information, including bank account basics, key terms, common issues, answers to questions on how to know your rights, and how-to guides for banking.
New York State's Department of Financial Services offers resources for residents to educate and protect themselves, specific to New York State banking establishments. Banking institutions headquartered outside of the state can still have branch locations within New York State but are regulated by the jurisdictions where they are headquartered.
Consumers can learn who supervises their bank and confirm that a bank is FDIC-insured using the Federal Deposit Insurance Corporation's Institution Directory. In addition, the FDIC provides resources to consumers who may need assistance with topics such as Credit and Loans, Deposit Services, and Frauds and Scams on their website. If you bank with a credit union, the National Credit Union Administration (NCUA) insures deposits at federally insured credit unions.
Last year the Federal Trade Commission (FTC) received over 240,000 reports for issues with Banks and Lenders. As we know, scammers stay current with the news and like to take advantage of situations like this. We want to remind consumers that you will not receive communication from the FDIC requesting private information. Be watchful for and resistant to any scams to obtain information from you by individuals or entities stating they are acting on behalf of your bank or the FDIC.
The Office of the Comptroller of Currency's website offers additional consumer protection resources.
Please contact our office for assistance if you have been scammed or have questions about avoiding or reporting a bank scam. The Erie County Office of Consumer Protection can be reached by phone at 716-858-1987 or via email at consumerprotection@erie.gov. Submit your Consumer Protection complaints through our website.
