FDIC Consumer News - Summer 2016
Updates and Reminders
The FDIC has added a Web page to help consumers understand when deposit insurance coverage would apply to funds on their prepaid cards. A variety of entities market prepaid cards that state that they offer FDIC deposit insurance coverage to cardholders. The new page makes clear that the prepaid card a consumer selects is insured by the FDIC if specific deposit insurance requirements are met, and that the coverage only applies if the bank fails and not, for example, if the card is lost or stolen. Learn more at www.fdic.gov/deposit/deposits/prepaid.html.
Educational resources from the federal government can help seniors avoid scams. One is a guide from the Securities and Exchange Commission and the Consumer Financial Protection Bureau (CFPB) to help adults prepare for a time when they may lose the ability to manage their money or property because of a serious illness or advanced age. Called Planning for Diminished Capacity and Illness, this guide features tips on creating and organizing important documents and getting help sooner rather than later from trusted individuals. The resources can be useful for adults preparing for the future as well as those who may be helping a parent or loved one who has diminished financial capacity.
The CFPB separately offers tips for seniors on how to work with a financial institution to reduce the risk of financial abuse. In addition, Money Smart for Older Adults is an educational tool from the FDIC and CFPB to help prevent and respond to elder financial exploitation. Materials for educators are available at https://catalog.fdic.gov.
The Federal Trade Commission has recently issued consumer information on how to avoid money wiring scams. For tips and a video on how to spot requests to wire money to a thief posing as someone else, start at www.consumer.ftc.gov/blog/avoiding-money-wiring-scams. For additional guidance, see our Summer 2013 article Don't Get Taken by Wire Transfer Scams.
A series of “Newcomer’s Guides to Managing Money” from the CFPB can help recent immigrants avoid financial pitfalls. The publications outline basic financial concepts for those new to the United States, including those with limited English proficiency, covering topics such as receiving wages or other payments, opening a checking account, paying bills and selecting financial products and services. The guides also include information on how to submit a complaint. Both English- and Spanish-versions are available. And for educational resources from the FDIC in Spanish, including tips for parents and caregivers to help children learn more about money, start at https://fdic.gov/quicklinks/spanish.html.
Reminder: As children go back to school, parents and teachers can go to the FDIC’s website for free resources on helping young people learn about money management. These include age-appropriate tips and conversation-starters in the Spring 2015 FDIC Consumer News and in our new Money Smart for Young People curriculum. To access these and other FDIC resources for parents and teachers, start at www.fdic.gov/education.