Consumer Financial Protection Circular 2022-02: Deceptive Representations Involving the FDIC’s Name or Logo or Deposit Insurance

Publisher lists this guidance as withdrawn/rescinded: Consumer Financial Protection Circular 2022-02: Deceptive Representations Involving the FDIC’s Name or Logo or Deposit Insurance, 87 FR 35866 (June 14, 2022); withdrawn on May 12, 2025 .

35866 Federal Register/ Vol. 87, No. 114 / Tuesday, June 14, 2022 / Rules and Regulations
1
See 12 U.S.C. 5481(12), (14), 5511.
2
See 12 U.S.C. 4301–4313; 12 CFR pt. 1030;
CFPB Exam Handbook, at TISA 1, https://
files.consumerfinance.gov/f/documents/cfpb_
supervision-and-examination-manual.pdf.
3
See 15 U.S.C. 1693–1693r; 12 CFR pt. 1005;
CFPB Exam Handbook, at EFTA 1, https://
files.consumerfinance.gov/f/documents/cfpb_
supervision-and-examination-manual.pdf.
4
See 12 U.S.C. 1831t(b)–(f); 12 CFR pt. 1009.
5
See 12 U.S.C. 5531, 5536; CFPB Exam
Handbook, at UDAAP 1, https://files.consumer
finance.gov/f/documents/cfpb_supervision-and-
examination-manual.pdf.
6
Additionally, accounts at federally insured
credit unions are insured through the National
Credit Union Share Insurance Fund (NCUSIF). See
NCUA, How Your Accounts are Federally Insured
(Feb. 2018), https://www.ncua.gov/files/
publications/guides-manuals/NCUAHowYourAcct
Insured.pdf.
7
See FDIC, Your Insured Deposits, at 3 (Jan.
2020), https://www.fdic.gov/resources/deposit-
insurance/brochures/documents/your-insured-
deposits-english.pdf.
Currency, the Board of Governors of the
Federal Reserve System, and the
National Credit Union Administration.
See, e.g., 12 U.S.C. 5516(d), 5581(c)(2)
(exclusive enforcement authority for
banks and credit unions with $10
billion or less in assets). Some Federal
consumer financial laws are also
enforceable by other Federal agencies,
including the Department of Justice and
the Federal Trade Commission, the
Farm Credit Administration, the
Department of Transportation, and the
Department of Agriculture. In addition,
some of these laws provide for private
enforcement.
Consumer Financial Protection
Circulars are intended to promote
consistency in approach across the
various enforcement agencies and
parties, pursuant to the CFPB’s statutory
objective to ensure Federal consumer
financial law is enforced consistently.
12 U.S.C. 5511(b)(4).
Consumer Financial Protection
Circulars are also intended to provide
transparency to partner agencies
regarding the CFPB’s intended approach
when cooperating in enforcement
actions. See, e.g., 12 U.S.C. 5552(b)
(consultation with CFPB by State
attorneys general and regulators); 12
U.S.C. 5562(a) (joint investigatory work
between CFPB and other agencies).
Consumer Financial Protection
Circulars are general statements of
policy under the Administrative
Procedure Act. 5 U.S.C. 553(b). They
provide background information about
applicable law, articulate considerations
relevant to the Bureau’s exercise of its
authorities, and, in the interest of
maintaining consistency, advise other
parties with authority to enforce Federal
consumer financial law. They do not
restrict the Bureau’s exercise of its
authorities, impose any legal
requirements on external parties, or
create or confer any rights on external
parties that could be enforceable in any
administrative or civil proceeding. The
CFPB Director is instructing CFPB staff
as described herein, and the CFPB will
then make final decisions on individual
matters based on an assessment of the
factual record, applicable law, and
factors relevant to prosecutorial
discretion.
Rohit Chopra,
Director, Consumer Financial Protection
Bureau.
[FR Doc. 2022–12729 Filed 6–13–22; 8:45 am]
BILLING CODE 4810–AM–P
BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Chapter X
Consumer Financial Protection
Circular 2022–02: Deceptive
Representations Involving the FDIC’s
Name or Logo or Deposit Insurance
AGENCY: Bureau of Consumer Financial
Protection.
ACTION: Consumer financial protection
circular.
SUMMARY: The Consumer Financial
Protection Bureau (Bureau or CFPB) has
issued Consumer Financial Protection
Circular 2022–02, titled, ‘‘Deceptive
representations Involving the FDIC’s
Name or Logo or Deposit Insurance.’’ In
this circular, the Bureau responds to the
question, ‘‘When do representations
involving the name or logo of the
Federal Deposit Insurance Corporation
(FDIC) or about deposit insurance
constitute a deceptive act or practice in
violation of the Consumer Financial
Protection Act (CFPA)? ’’
DATES: The Bureau released this circular
on its website on May 17, 2022.
ADDRESSES: Enforcers, and the broader
public, can provide feedback and
comments to Circulars@cfpb.gov.
FOR FURTHER INFORMATION CONTACT: Brad
Lipton, Senior Counsel, Legal Division,
at (202) 435–7700. If you require this
document in an alternative electronic
format, please contact CFPB_
Accessibility@cfpb.gov.
SUPPLEMENTARY INFORMATION:
Question Presented
When do representations involving
the name or logo of the Federal Deposit
Insurance Corporation (FDIC) or about
deposit insurance constitute a deceptive
act or practice in violation of the
Consumer Financial Protection Act
(CFPA)?
Response
Covered persons or service providers
likely violate the CFPA’s prohibition on
deception if they misuse the name or
logo of the FDIC or engage in false
advertising or make misrepresentations
to consumers about deposit insurance,
regardless of whether such conduct
(including the misrepresentation of
insured status) is engaged in knowingly.
Representations about deposit insurance
may be particularly relevant with
respect to new financial products or
services, especially those involving new
technologies such as digital assets,
including crypto-assets.
Analysis
The Bureau administers a number of
laws and regulations relating to the
offering or providing of deposit
accounts, including these provisions:
1

•The Truth in Savings Act and its
implementing regulation (Regulation
DD), which enable consumers to make
informed decisions about their accounts
at depository institutions through the
use of uniform disclosures;
2

•The Electronic Fund Transfer Act
and its implementing regulation
(Regulation E), which protect consumers
engaging in electronic fund transfers
and remittance transfers;
3

•Portions of the Federal Deposit
Insurance Act (FDI Act) and its
implementing regulations, which
require depository institutions lacking
Federal deposit insurance to make
certain disclosures;
4

•The CFPA, which, among other
things, prohibits unfair, deceptive, or
abusive acts or practices.
5

Deposit insurance has long been a
means to promote confidence in the
banking system. The most common form
of deposit insurance is administered by
the Federal Deposit Insurance
Corporation (FDIC).
6
The FDIC insures
deposits at FDIC-insured banks and
savings associations up to the maximum
deposit insurance amount, currently
$250,000, per depositor, per FDIC-
insured bank, for each account
ownership category.
7

Representations about deposit
insurance may be particularly relevant
with respect to new financial products
or services, especially those involving
new technologies such as digital assets,
including crypto assets. New
technologies may yield significant
benefits for consumers, workers, and
small businesses. Nonetheless,
especially with respect to new
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35867 Federal Register/ Vol. 87, No. 114 / Tuesday, June 14, 2022 / Rules and Regulations
8
See FDIC, Final Rule on False Advertising,
Misrepresentation of Insured Status, and Misuse of
the FDIC’s Name or Logo (adopted May 17, 2022),
https://www.fdic.gov/news/board-matters/2022/
2022-05-17-notice-dis-a-fr.pdf.
9
This Circular does not constitute an
interpretation of section 18(a)(4) of the FDI Act,
rules adopted thereunder, or the authorities of the
FDIC.
10
Specifically, FDI Act section 18(a)(4)(A)
prohibits any person from representing or implying
that any deposit liability, obligation, certificate, or
share is insured or guaranteed by the FDIC if such
deposit liability, obligation, certificate, or share is
not insured or guaranteed by the FDIC (i) by using
the terms ‘‘Federal Deposit,’’ ‘‘Federal Deposit
Insurance,’’ ‘‘Federal Deposit Insurance
Corporation,’’ any combination of such terms, or the
abbreviation ‘‘FDIC’’ as part of the business name
or firm name of any person, including any
corporation, partnership, business trust,
association, or other business entity; or (ii) by using
such terms or any other terms, sign, or symbol as
part of an advertisement, solicitation, or other
document. 12 U.S.C. 1828(a)(4)(A). FDI Act section
18(a)(4)(B) prohibits any person from knowingly
misrepresenting (i) that any deposit liability,
obligation, certificate, or share is insured by the
FDIC if such deposit liability, obligation, certificate,
or share is not so insured; or (ii) the extent to which
or the manner in which any deposit liability,
obligation, certificate, or share is insured by the
FDIC if such deposit liability, obligation, certificate,
or share is not so insured to the extent or in the
manner represented. 12 U.S.C. 1828(a)(4)(B).
11
12 U.S.C. 5531, 5536.
12
12 U.S.C. 5481(5), (6).
13
12 U.S.C. 5481(15)(A)(iv), (v); see also 12
U.S.C. 5481(8).
14
See, e.g., CFPB v. Gordon, 819 F.3d 1179,
1192–93 (9th Cir. 2016).
15
See, e.g., FTC v. Verity Int’l, Ltd., 443 F.3d 48,
63 (2d Cir. 2006) (‘‘The deception need not be made
with intent to deceive. . . .’’); FTC v. Bay Area
Bus. Council, Inc., 423 F.3d 627, 635 (7th Cir. 2005)
(‘‘The FTC is not, however, required to prove intent
to deceive.’’); FTC v. Freecom Communications,
Inc., 401 F.3d 1192, 1204 n.7 (10th Cir. 2005)
(‘‘Unlike the elements of common law fraud, the
FTC need not prove scienter, reliance, or injury to
establish a [section] 5 violation.’’).
16
Certain categories of information are presumed
to be material. In general, information about the
central characteristics of a consumer financial
product or service—such as costs, benefits, or
restrictions on the use or availability—is presumed
to be material. Express claims made with respect to
a consumer financial product or service are
presumed material. Implied claims are presumed to
be material when evidence shows that the
institution intended to make the claim (even though
intent to deceive is not necessary for deception to
exist). Omissions will be presumed to be material
when the financial institution knew or should have
known that the consumer needed the omitted
information to evaluate the product or service. See
CFPB Exam Handbook, at UDAAP 7, https://
files.consumerfinance.gov/f/documents/cfpb_
supervision-and-examination-manual.pdf.
technologies, some market participants
may seek to entice consumers to use
their products or services by deceptively
advertising that uninsured products or
services are FDIC-insured. These
misrepresentations disadvantage
financial institutions that truthfully
market FDIC-insured accounts to
consumers. Such misrepresentations
also harm consumers, who may find
that their assets are not insured in a
time of financial distress.
The CFPB is issuing this circular to
emphasize that covered persons and
service providers are required to comply
with the CFPA with respect to
representations to consumers involving
the name or logo of the FDIC and
representations about deposit insurance.
The CFPB is issuing this circular in
connection with the FDIC’s adoption of
a regulation on related subject matter
involving section 18(a)(4) of the FDI
Act, 12 U.S.C. 1828(a)(4).
8
Thus, the
circular is particularly focused on
misrepresentations to consumers about
FDIC insurance. This circular describes
certain misrepresentations to consumers
that can violate the CFPA’s prohibition
on deceptive acts or practices in
connection with a transaction with a
consumer for a consumer financial
product or service, or the offering of a
consumer financial product or service.
9

This circular notes that
misrepresentations to consumers may
violate the CFPA regardless of whether
they are made knowingly.
Section 18(a)(4) of the FDI Act, 12
U.S.C. 1828(a)(4), prohibits any person
from engaging in false advertising or
misusing the name or logo of the FDIC
to represent or imply that uninsured
deposits are FDIC-insured and from
making knowing misrepresentations
about the extent or manner of deposit
insurance provided to any deposits.
10

Under the CFPA, covered persons and
service providers are prohibited from
committing or engaging in an unfair,
deceptive, or abusive act or practice in
connection with the offering or
provision of a consumer financial
product or service.
11
A covered person
includes any person that engages in
offering or providing financial products
or services for use by consumers
primarily for personal, family, or
household purposes.
12
Financial
products or services are defined to
include, for example, engaging in
deposit-taking activities, transmitting or
exchanging funds, or otherwise acting as
a custodian of funds or any financial
instrument for use by or on behalf of a
consumer, as well as (subject to certain
exceptions) selling, providing, or
issuing stored value or payment
instruments.
13

Material misrepresentations are
‘‘deceptive’’ practices in violation of the
CFPA.
14
Like FDI Act section
18(a)(4)(A), which prohibits any false
advertising or misuse of the name or
logo of the FDIC, but unlike under FDI
Act section 18(a)(4)(B), which prohibits
knowing misrepresentations regarding
the extent or manner that deposits are
insured, a misrepresentation to
consumers may violate the CFPA’s
prohibition on deception regardless of
whether the misrepresentation was
made knowingly.
15
Additionally,
disclaimers may not cure otherwise
deceptive messages or practices.
Covered persons or service providers
likely violate the CFPA’s prohibition on
deception if they misuse the name or
logo of the FDIC or engage in false
advertising or make misrepresentations
to consumers about deposit insurance,
regardless of whether such conduct
(including the misrepresentation of
insured status) is engaged in knowingly.
Representations made by covered
persons or service providers about FDIC
insurance will typically be material.
16

Accordingly, for example, if a person
engages in or purports to engage in
deposit-taking activity by accepting (or
offering to accept) funds for use by
consumers, and that person
misrepresents that such funds are
insured by the FDIC, that person likely
violates the CFPA’s prohibition on
deception, even if the misrepresentation
was not made knowingly. Similarly
deceptive are claims that consumer
financial products or services are
‘‘regulated’’ by the FDIC or ‘‘insured’’ or
‘‘eligible for’’ FDIC insurance if those
claims expressly or implicitly indicate
that the product is FDIC-insured when
that is not in fact the case. In particular,
firms offering or providing digital assets,
including crypto assets, may be
particularly prone to making such
deceptive claims to consumers about
FDIC deposit insurance coverage.
About Consumer Financial Protection
Circulars
Consumer Financial Protection
Circulars are issued to all parties with
authority to enforce Federal consumer
financial law. The CFPB is the principal
Federal regulator responsible for
administering Federal consumer
financial law, see 12 U.S.C. 5511,
including the Consumer Financial
Protection Act’s prohibition on unfair,
deceptive, and abusive acts or practices,
12 U.S.C. 5536(a)(1)(B), and 18 other
‘‘enumerated consumer laws,’’ 12 U.S.C.
5481(12). However, these laws are also
enforced by State attorneys general and
State regulators, 12 U.S.C. 5552, and
prudential regulators including the
Federal Deposit Insurance Corporation,
the Office of the Comptroller of the
Currency, the Board of Governors of the
Federal Reserve System, and the
National Credit Union Administration.
See, e.g., 12 U.S.C. 5516(d), 5581(c)(2)
(exclusive enforcement authority for
banks and credit unions with $10
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35868 Federal Register/ Vol. 87, No. 114 / Tuesday, June 14, 2022 / Rules and Regulations
1
12 U.S.C. 5536(a)(1)(B).
2
12 U.S.C. 5481(12).
3
12 U.S.C. 5552.
4
See, e.g., 12 U.S.C. 5516(d), 5581(c)(2).
5
12 U.S.C. 5511(b)(4).
billion or less in assets). Some Federal
consumer financial laws are also
enforceable by other Federal agencies,
including the Department of Justice and
the Federal Trade Commission, the
Farm Credit Administration, the
Department of Transportation, and the
Department of Agriculture. In addition,
some of these laws provide for private
enforcement.
Consumer Financial Protection
Circulars are intended to promote
consistency in approach across the
various enforcement agencies and
parties, pursuant to the CFPB’s statutory
objective to ensure Federal consumer
financial law is enforced consistently.
12 U.S.C. 5511(b)(4).
Consumer Financial Protection
Circulars are also intended to provide
transparency to partner agencies
regarding the CFPB’s intended approach
when cooperating in enforcement
actions. See, e.g., 12 U.S.C. 5552(b)
(consultation with CFPB by State
attorneys general and regulators); 12
U.S.C. 5562(a) (joint investigatory work
between CFPB and other agencies).
Consumer Financial Protection
Circulars are general statements of
policy under the Administrative
Procedure Act. 5 U.S.C. 553(b). They
provide background information about
applicable law, articulate considerations
relevant to the Bureau’s exercise of its
authorities, and, in the interest of
maintaining consistency, advise other
parties with authority to enforce Federal
consumer financial law. They do not
restrict the Bureau’s exercise of its
authorities, impose any legal
requirements on external parties, or
create or confer any rights on external
parties that could be enforceable in any
administrative or civil proceeding. The
CFPB Director is instructing CFPB staff
as described herein, and the CFPB will
then make final decisions on individual
matters based on an assessment of the
factual record, applicable law, and
factors relevant to prosecutorial
discretion.
Rohit Chopra,
Director, Consumer Financial Protection
Bureau.
[FR Doc. 2022–12728 Filed 6–13–22; 8:45 am]
BILLING CODE 4810–AM–P
BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Chapter X
Consumer Financial Protection
Circular 2022–01: System of Consumer
Financial Protection Circulars to
Agencies Enforcing Federal Consumer
Financial Law
AGENCY: Bureau of Consumer Financial
Protection.
ACTION: Consumer financial protection
circular.
SUMMARY: The Consumer Financial
Protection Bureau (Bureau or CFPB) has
issued Consumer Financial Protection
Circular 2022–01, titled, ‘‘System of
Consumer Financial Protection
Circulars to Agencies Enforcing Federal
Consumer Financial Law.’’ In this
circular, the Bureau outlines its efforts
to promote consistency among enforcers
and fair competition in the market by
launching a new system to provide
guidance to other agencies with
consumer financial protection
responsibilities on how the CFPB
intends to enforce Federal consumer
financial law.
DATES: The Bureau released this circular
on its website on May 16, 2022.
ADDRESSES: Enforcers, and the broader
public, can provide feedback and
comments to Circulars@cfpb.gov.
FOR FURTHER INFORMATION CONTACT:
Brian Shearer, Senior Advisor, Office of
the Director; Brad Lipton, Senior
Counsel, Legal Division, at (202) 435–
7700. If you require this document in an
alternative electronic format, please
contact CFPB_Accessibility@cfpb.gov.
SUPPLEMENTARY INFORMATION: The CFPB
will issue Consumer Financial
Protection Circulars to the broad set of
government agencies responsible for
enforcing Federal consumer financial
law.
The CFPB is the principal Federal
regulator responsible for administering
the Federal consumer financial laws, see
12 U.S.C. 5511, including the Consumer
Financial Protection Act’s prohibition
on unfair, deceptive, and abusive acts or
practices,
1
and eighteen other
‘‘enumerated consumer laws.’’
2

However, the CFPB is not the only
enforcer of these laws; enforcement
responsibility is spread among a large
set of State and Federal government
agencies. This includes, most notably,
State attorneys general and State
regulators
3
and prudential regulators
such as the Federal Deposit Insurance
Corporation, the Office of the
Comptroller of the Currency, the Board
of Governors of the Federal Reserve
System, and the National Credit Union
Administration.
4
Some Federal
consumer financial laws are also
enforceable by other Federal agencies,
including the Department of Justice, the
Federal Trade Commission, the Farm
Credit Administration, the Department
of Transportation, and the Department
of Agriculture. In addition, some of
these laws provide for private
enforcement.
Given the broad variety of agencies
responsible for enforcing Federal
consumer financial law, there is a risk
that companies might encounter
inconsistent enforcement strategies and
approaches. One of the CFPB’s five
statutory objectives is to ensure Federal
consumer financial law is enforced
consistently regardless of the status of a
person as a chartered bank or nonbank.
5

Many entities are subject to the
jurisdiction of multiple agencies, and to
maintain certainty of expectations for
those companies with multiple
regulators, it is important for State and
Federal government agencies to
consistently enforce the laws that the
CFPB administers. Consistency is also
imperative to creating a level playing
field between companies that compete
in the same market but are subject to the
jurisdiction of different enforcers and
Consumer Financial Protection
Circulars will provide transparency to
partner agencies regarding the CFPB’s
intended approach when cooperating in
enforcement actions.
As described more fully below,
Consumer Financial Protection
Circulars will be policy statements
under the Administrative Procedure Act
and will be released publicly to increase
transparency for the benefit of the
public and regulated entities. Consumer
Financial Protection Circulars will
provide background information about
applicable law, articulate considerations
relevant to the CFPB’s exercise of its
authorities and advise other parties with
authority to enforce Federal consumer
financial law. The Director of the CFPB
will authorize issuance of each
Consumer Financial Protection Circular,
and the CFPB will publish them on its
website and in the Federal Register.
The CFPB is beginning to identify a
number of issues that would benefit
from clear and consistent enforcement,
and the CFPB intends to issue new
Consumer Financial Protection
Circulars to advance these goals. The
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