WASHINGTON – After almost 20 years the Federal Trade Commission yesterday approved a final rule requiring privately insured credit unions to prominently disclose that information to members.
The disclosure, which will apply to about 170 credit unions in nine states insured by ASI, Inc., of Dublin, Ohio, were included in 1991 legislation known as the FDIC Improvement Act but the FTC was prevented from developing the disclosures because of lobbying to prevent funding for the project.
The rule announced Tuesday requires that institutions without federal deposit insurance disclose they are not federally insured and that the federal government does not guarantee consumers will get their money back if the institution fails. Those disclosures must be made on account statements, in advertising and inside branches at deposit windows.
