Alert July 24, 2012

FDIC Warns Against Passing Assessment Fees on to Customers

The FDIC issued a Financial Institutions Letter cautioning insured depository institutions about passing deposit insurance assessment fees on to depositors, labeled as “FDIC fees,” “FDIC Insurance Premium” or some other similarly-described fee.  The FDIC’s concern is not with the passing on of the fee, which is allowed, but that by labeling them as such, insured depository institutions run the risk of disclosing supervisory information, such as their rating, or misleading consumers about the nature of the fees.  The FDIC also withdrew prior advisory opinions that pre-dated risk based pricing and allowed insured institutions to pass insurance costs on to depositors with notice that the cost was for that purpose.