Question and Answer Guide
NetBank, Alpharetta, GA
The following questions and answers represent the most commonly asked questions by customers of the failed bank.
- Over $100,000 What if I had more than $100,000 in my accounts at NetBank?
- What/Why? What happened, why did the bank fail?
- Customer Impact How does the failure affect me?
- Claim Accounts How do I claim my account(s)?
- New Bank Insured? Is the new bank insured by FDIC?
- Internet Connection Why doesnít my internet connection to NetBank work?
- Lose Any Money? Will I lose anything on my deposit account?
- Uninsured Will I collect my uninsured deposits?
- Deposits at Assuming Bank Already I already have other deposit accounts with the assuming bank. When combined with the balances at this bank, my deposits exceed $100,000. Are all of my funds at both banks insured?
- Checks Can I continue to use my personal checks, or will I have to order new checks?
- Outstanding Checks What if I had outstanding checks that have not yet cleared my account? Will they be honored?
- Merchant Refusal to Honor Check A merchant will not honor my check. What can I do?
- ATM/Debit Card Can I continue to use my ATM or debit card?
- Direct Deposits Will my direct deposits continue? (Social Security, Pension, Salary, etc.)
- Automatic Payments Will my automatic payments through BillPay continue?
- Early Withdrawal Penalty Will I incur an early withdrawal penalty if I close my CD?
- IRA/Retirement Accounts What if I have an Individual Retirement Account (IRA)? Will my savings still be insured?
- Records What if I need information regarding my account during the time NetBank was in business?
- Loan Payments How do I make my loan payments?
- Deposit Broker I am a deposit broker. What do I need to do?
- Tax Reporting - 1098/1099s Who will send my 1098 and/or 1099 information after the end of the year?
- Unpaid Bill I did some work for NetBank and have not yet been paid. What should I do?
- Fraud? Was this bank closed because of fraud?
- Deposit Insurance Where can I find out more information about the FDIC and/or federal deposit insurance rules?
- Interest Rates Will I continue to earn interest at the same rate?
- Assuming Bank Information New loans and the lending policies of ING DIRECT, please visit their web site: ING DIRECT.
- Media I am a member of the media and would like some information.
1. What if I had more than $100,000 in my accounts at NetBank?
If you have more than $100,000 in your account (or $250,000 in your IRA), or if the total of your related accounts exceeds $100,000, your accounts may require review by an FDIC Claim Agent. All accounts that appear to be related are reviewed to determine ownership and insurance coverage. If you think you might have uninsured deposits, you should call (800) 323-6111 to schedule a telephone appointment with an FDIC Claim Agent.
2. What happened, why did the bank fail?
As of Friday, September 28, 2007, NetBank was closed by the Office of Thrift Supervision, and the Federal Deposit Insurance Corporation (FDIC) was appointed Receiver. According to regulatory policy, there is no advance notice given to the public. The good news is that no one lost any insured deposit money as a result of the closure of NetBank.
3. How does the failure affect me?
All insured deposits have been transferred to ING DIRECT, the nation's largest direct bank and fourth largest thrift. ING DIRECT is the operating name of ING Bank, fsb which is headquartered in Wilmington, DE. If you held an account at NetBank, you now have an account at ING DIRECT. You will be notified of any changes to your account, including any new signature cards or forms, by ING DIRECT.
4. How do I claim my account(s)?
Your account(s) up to the insured limit has already been transferred to ING DIRECT, and your account will be handled as usual.
IMPORTANT NOTICE: ING DIRECT and the FDIC as Receiver for NetBank will not ask you for personal identifiable information (PII). PII includes such items as name, address, social security number, driver license number, etc. All appropriate PII has transferred to the FDIC and/or ING DIRECT. At a later time, the FDIC and/or ING DIRECT may ask you to verify PII contained in the former banks records, but they will not ask you to provide additional PII in an unsolicited e-mail.
Depositors speaking to the FDIC could be asked to verify the last four numbers of their social security number only. If a depositor is out of the country, they will also be asked to verify their address and account number.
5. Is the new bank insured by FDIC?
Yes. Your deposit at ING DIRECT is insured by the Federal Deposit Insurance Corporation (FDIC), and each depositor is insured to at least $100,000, as established by law.
6. Why doesnít my internet connection to NetBank work?
NetBank had a number of avenues for customers to access funds, and each of those avenues had to be closed off so that a final closing accounting could be completed. Online service is expected to resume in a read-only mode later Friday evening. Transactional access will be available later in the weekend.
7. Will I lose anything on my deposit account?
Principal and interest on insured accounts, through Friday, September 28, 2007, are fully protected by the FDIC, to at least $100,000. If you have an/any account(s) (or aggregation of accounts or interests in accounts) over the insured amount, you need to speak with an FDIC Claim Agent to review the status of the funds that are in excess of $100,000. Certain entitlements and different types of accounts can be insured in excess of the $100,000. IRA funds are insured separately from other types of accounts up to $250,000.
8. Will I collect my uninsured deposits?
If it is determined that you have some uninsured funds, the FDIC will generate and mail to you a Receiver Certificate. This certificate entitles you to share proportionately in any funds recovered through the assets of NetBank. The good news is that due to the projected sale of assets of the former bank, the FDIC is in the position to provide each uninsured depositor with an dividend equal to 50% of your uninsured amount. These funds will be deposited directly into your account net of your uninsured portion. In the future you may eventually recover more of your uninsured funds.
Of course, you will have full access to your insured deposits, and there will be no disruption in service to your new bank. Only the uninsured portion of your account would be paid as the assets are liquidated. For an explanation of the dividend process go to FDIC Dividends from Failed Banks.
9. I already have other deposit accounts with the assuming bank. When combined with the balances at this bank, my deposits exceed $100,000. Are all of my funds at both banks insured?
The accounts transferred to ING DIRECT will be separately insured for six months after the failure. For additional information, please go to Are My Deposits Insured.
10. Can I continue to use my personal checks, or will I have to order new checks?
You will be able to continue using your personal checks at this time. You will receive a mailed notice from ING DIRECT in the next week regarding your transferred accounts and any changes. You may receive new checks and new account numbers in the future.
11. What if I had outstanding checks that have not yet cleared my account? Will they be honored?
Checks that were drawn on NetBank that did not clear before the institution closed will be honored up to your available balance or the insured limit.
12. A merchant will not honor my check. What can I do?
A copy of the press release PR-81-2007 can be provided as it states that deposits have been transferred, and it is business as usual.
13. Can I continue to use my ATM or debit card?
Yes, you can still use your cards as usual. If you need to change anything in the future, the ING DIRECT will notify you.
14. Will my direct deposits continue? (Social Security, Pension, Salary, etc.)
Yes, those will continue. If you need to change anything in the future, the ING DIRECT will notify you.
15. Will my automatic payments through BillPay continue?
The BillPay feature has been reactivated, and all recurring transactions have been processed.
16. Will I incur an early withdrawal penalty if I close my CD?
You may withdraw your funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with the ING DIRECT provided the deposits are not pledged as collateral for loans.
17. What if I have an Individual Retirement Account (IRA)? Will my savings still be insured?
Yes. IRA funds are insured separately from other types of accounts up to $250,000.
18. What if I need information regarding my account during the time NetBank was in business?
All deposit histories and records are in the process of being passed along to ING DIRECT. To obtain a copy of your records please send your request through the secure e-mail feature that is available when you are logged into your account.
19. How do I make my loan payments?
The terms and conditions of any loan you may have had with NetBank remain in effect because they are contractually agreed to in your promissory note with NetBank. You should continue to make your loan payments at the same location as in the past. Within the next few weeks, you will receive a letter instructing you how and where to continue repayment of your loans.
20. I am a deposit broker. What do I need to do?
The FDIC offers an online reference guide to deposit brokers acting as agents for their investor clientele. This site outlines the FDICís policies and procedures that must be followed by deposit brokers when filing for pass-through insurance coverage on custodial accounts in a failed FDIC-insured institution.
If you are a customer who has a NetBank deposit through a broker, you must contact your broker.
21. Who will send my 1098 and/or 1099 information after the end of the year?
ING DIRECT will be responsible for mailing 1099 tax information for interest paid to you. The loan purchaser or servicer will be responsible for mailing 1098 tax information for mortgage interest you have paid.
22. I did some work for NetBank and have not yet been paid. What should I do?
Please mail a statement to:
FDIC as Receiver for NetBank
1601 Bryan Street
Dallas, TX 75201
Attn: Claims Department
23. Was this bank closed because of fraud?
The FDIC did not close the bank but was appointed receiver of the closed bank. The Office of Thrift Supervision (OTS) is the agency which closed the bank; therefore, questions of this nature should be directed to the OTS. Their telephone number is 404-888-5631. No regulatory agency can absolutely prevent a bank from failing. This is why depositors are covered by deposit insurance provided by the FDIC.
Every time an FDIC-insured institution fails, the FDIC conducts an investigation. FDIC does not have jurisdiction over criminal matters; however, a referral to law enforcement will be made if anything is found which is deemed to be unusual or criminal in nature. If a referral is made, this will not be disclosed. Routine investigations take a considerable amount of time; the immediate concern is to make sure depositors have access to their funds as quickly as possible.
24. Where can I find out more information about the FDIC and/or federal deposit insurance rules?
You may access our website, which contains information and an Electronic Deposit Insurance Estimator EDIE - FDIC's Electronic Deposit Insurance Estimator
25. Will I continue to earn interest at the same rate?
All interest accrued though September 28th will be paid at your same rate. ING DIRECT will be reviewing rate and will provide further information soon.
26. For all questions regarding new loans and the lending policies of ING DIRECT, please visit their web site:
On November 1, 2012, Capital One purchased ING DIRECT.
Capital One (home.capitalone360.com)
27. I am a member of the media and would like some information.
Please contact Mr. David Barr, Assistant Director of FDICís Office of Public Affairs, at (202) 898-6992.
SCAMS: Be watchful for and resistant to any scams to obtain information from you by individuals or entities stating that they are acting on behalf of either the failed bank, new bank, or the FDIC. Should you be contacted by anyone requesting personal information from you related to this event, please contact the call center above and you will be directed to the appropriate person.
For more information: www.fdic.gov/bank/individual/failed/NetBank.html