You Absolutely, Positively Have To Have It Mailed By July 29-MAYBE!

The FDIC Board of Directors met on July 10 regarding the request by financial institutions to have extra time to mail out notices notifying customers of changes in deposit insurance coverage. These notices were supplied to every institution affected for reproduction and distribution. The FDIC had instructed that these notices had to be in the customer's hands by July 29, 1990.

Even if depositors such as passbook account holders do not receive a monthly statement, they still must receive a copy of the notice by July 29.

The regulation specified that this notice had to be mailed by July 29 by banks and thrifts-credit unions are not affected. In a statement from the July meeting, FDIC said the July 29 compliance date is still effective.

However, they also stated they would take "a lenient approach until September 1 toward compliance with the rule so long as banks made a 'good faith' effort to comply.

One spokesperson went so far as to say, "If they don't make it to all depositors, it's not the end of the world."

Editor's note...No Comment!

Copyright © 1990 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 1, No. 7, 7/90