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NetBank Fails, FDIC Insurance Reminder
Posted on Sep 28, 2007 by Tom Fragala
This is not something you want to see when you visit your bank’s website:
NetBank, an internet-only bank with $2.5 BILLION in assets was shut down today. That’s right, shut down without warning to the depositors and customers. Customers that had accounts with more than $100,000 are not protected above that mount by FDIC insurance and are basically out of luck (they become creditors and wait in line hoping to get some small settlement).
This is just a reminder: FDIC insurance does NOT protect you against losses from fraud or identity theft. So if a thief drains your account or you fall victim to a scam, you have no federal protection. FDIC insurance only protects against bank failure. A common misconception.
Filed under: Fraud, Identity Theft, Tips
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