FTC Seeking Comment On Private Insurance
After waiting more than 10 years, the Federal Trade Commission last week voted to issue for comment rules regulating disclosures for privately insured credit unions. The rules will require, among other things, that disclosures prominently explain that accounts at privately insured credit unions are not insured by the federal government and what that means.
The FTC was originally required to set the rules under the 1989 FIDC Improvements Act but the rules have been stalled since then by congressional appropriators who did not want the FTC expending resources on the credit union rules.
The proposed disclosures, issued for a 90-day comment period, will cover about 205 credit unions insured by ASI of Dublin, Ohio.