CFPB Takes Action Involving False Claims of Insurance Coverage
Highlights
The Consumer Financial Protection Bureau (CFPB) intends to step up enforcement and oversight for statements regarding FDIC insurance
Digital assets and stablecoins were identified in reference to misuse of FDIC logo and name and insurance misrepresentations
Claims by fintech offerors that products are FDIC “regulated” or “eligible for FDIC insurance” may violate Consumer Financial Protection Act if products are not actually insured
In conjunction with a new final rule, the Consumer Financial Protection Bureau (CFPB) issued an enforcement memorandum providing guidance that addresses deceptive acts or practices for using the name or logo of the Federal Deposit Insurance Corporation (FDIC). The guidance also outlines how misrepresentations about deposit insurance, even those that are not “knowing,” may violate the Consumer Financial Protection Act (the Act).
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