How can I open an account at the Federal Reserve?
The Federal Reserve Banks are not authorized to open
accounts for individuals. Only depository institutions and
certain other financial entities may open an account at a
Federal Reserve Bank.
How can I prevent "identity theft" - someone is using my
personal information to commit fraud or theft?
You should be cautious if someone tries to obtain your
name, date of birth, social security number, driver's
license number, bank account number, or credit card
information.
The Federal Trade Commission (FTC) maintains a central
web site for
information about identity theft that contains more
detailed information about how to protect yourself and
what to do if you believe you are a victim of identity
theft.
Learn More
Where can I find information about leasing a vehicle?
The Federal Reserve Board's web site provides a
consumer
guide to vehicle leasing. Under the Consumer Leasing
Act, consumers have the right to information about the
costs and terms of leasing a vehicle. The information in
the guide will help you compare lease offers and negotiate
a lease that will best fit your needs, budget, and driving
patterns.
Learn More
How can I spot a financial fraud or a scam?
Criminals sometimes use the name of a government agency
in an attempt to give legitimacy to fraudulent
transactions, financial instruments, investment
opportunities, and fund-raising proposals. The Federal
Reserve Bank of New York's website provides current information about frauds and
scams, as does the Treasury's Bureau of the Public Debt web
site.
The Federal Reserve is aware of the proliferation of
these schemes but does not have any authority to
investigate or prosecute the wrongdoers involved.
Suspected
scams should be reported to the
local office
of the Federal Bureau of Investigation (FBI) or to the U.
S. Secret Service.
Learn More
I keep receiving notices about privacy rights from banks
and credit card issuers. What do they mean, and what am I
supposed to do about them?
Federal law requires financial companies to tell you about
their policies regarding the privacy of your personal
financial information. With some exceptions, the law
limits the ability of financial companies to share your
personal financial information. To learn more about what
these notices mean and how you may want to respond to
them,
read the Federal Reserve Board's
"Privacy Choices" guide.
Learn More
Do you have any materials that you could send me to help
teach money in my third grade classroom?
Visit the Federal Reserve's educational website,
Fed
eralReserveEducation.org, for resources for educators,
students, parents, and the general public.
Learn More
Is it true that I can't cash a check that is over 6 months
old?
The state law that governs many aspects of check payments
(the Uniform Commercial Code) generally provides that a
bank may, but is not obligated to, pay an ordinary check
that is more than six months old (measured from the date
on the check). Some states enact non-uniform provisions
of the Uniform Commercial Code, so you should check your
state�s law for the specific rule that applies.
How does Check 21 affect me?
Because of Check 21 and other check-system improvements,
your checks may be processed faster--which means money may
be deducted from your checking account faster. Before you
write a check, make sure that your checking account has
enough money in it to cover the check.
You may be one of the majority of consumers who do not
receive their canceled checks with their account
statements. Instead, you may receive "pictures"
(known as digital images) of your checks, a list of your
paid checks, or a combination of these items. Check 21
will
have little or no effect on these practices.
On the other hand, if you do get your canceled checks back
in your regular account statements, you may notice some
changes under Check 21. For example, your bank may start
sending you a combination of original checks and
substitute
checks in your account statements. You may use a canceled
substitute check as proof of payment just as you would use
a canceled original check.
The account agreement you have with your bank governs
whether you receive canceled checks with your account
statements. If you currently get canceled checks back with
your statements, you will continue to receive your checks
unless your bank notifies you that it is changing your
account agreement.
You may receive substitute checks in other limited
circumstances. For example, your bank may give you a
substitute check if you ask to have a particular canceled
check back to prove a payment. Also, your bank might
provide a substitute check to you when returning a
"bounced" check that you deposited into your
account.
By law, your bank may not pay a check from your account
unless you authorized that payment. In other words, you
are
protected from having your bank pay the same check from
your account more than once or from having your bank pay
the wrong amount for a check. Check 21 does not change
these protections. However, Check 21 does give you special
rights if you receive a substitute check from your bank.
This guide explains your rights regarding substitute
checks. For your rights in other situations, contact your
bank.
What is a substitute check?
A substitute check is a special paper copy of the front and
back of an original check. The substitute check may be
slightly larger than the original check. Substitute checks
are specially formatted so they can be processed as if they
were original checks. The front of a substitute check
should state: "This is a legal copy of your check. You
can use it the same way you would use the original
check." The following web page contains samples that
show what a substitute check looks like:
http://www.federalreserve.gov/pubs/check21/consumer_guide.ht
m.
Not all copies of a check are substitute checks. For
example, pictures of multiple checks printed on a page
(also known as an image statement) that is returned to you
with your monthly statement are not substitute checks.
Online check images and photocopies of original checks are
not substitute checks either. You can use image statements
and other copies of checks to verify that your bank has
paid a check.
Why do banks create substitute checks?
Some banks find that exchanging electronic images of checks
with other banks is faster and more efficient than
physically transporting paper checks. In certain
circumstances, however, banks may need to use a paper
check. To address this need, Check 21 allows a bank to
create and send a substitute check that is made from an
electronic image of the original check.
Can I require my bank to return my original check?
No. In general, the law does not require your bank to
return your original check. Many banks destroy original
paper checks. Other banks may store original checks for
some period of time and then destroy them. Check 21 ensures
that you have the same legal protections when you receive a
substitute check from your bank as you do when you receive
an original check.
What should I do if I receive a substitute check and there
is a problem?
Check 21 provides a special process that allows you to
claim a refund (also known as an expedited recredit) when
you receive a substitute check from a bank and you think
there is an error because of the substitute check. For
example, you may think that you were charged twice for the
same check.
You may use the special process to get a refund of the
money you lost. The amount of your refund under the special
process is limited to the amount of your loss or the amount
of the substitute check that you received, whichever is
less, plus interest on that amount if your account earns
interest. If your loss is more than the amount of the
substitute check, you may have the right under other laws
to recover additional amounts of money.
If your bank finds that your claim is valid, you should
receive your refund by the next business day after the
bank's finding. Unless your bank finds that your claim is
not valid, you should receive up to $2,500 of your refund
(plus interest if your account earns interest) within 10
business days after your bank receives your claim. You
should receive the rest of your refund (plus interest if
your account earns interest) no later than 45 days after
your bank receives your claim. If your bank finds that your
claim is not valid, it will send you a notice explaining
why.
Your bank may reverse the refund (including any interest on
the refund) if it can show that the substitute check did
not cause an error in your account.
How do I file a claim under the special refund procedure
for substitute checks?
If you notice a problem with a substitute check, you should
contact your bank as soon as possible. In general, to use
the special refund procedure for substitute checks, you
should contact your bank no later than 40 days from the
date your bank provided the substitute check or from the
date of the statement that shows the problem.
In general, you must:
- Describe why you think the charge to your account is
incorrect.
- Describe why you believe the original check or a better
version of the substitute check is needed to determine
whether the substitute check should have been deducted from
your account.
- Estimate how much money you lost because of the
substitute check. (Include any fees you were charged as a
result of the substitute check. Also, alert your bank to
any interest you lost, if your account earns interest.)
- Provide a copy of the substitute check, or give your
bank information that will help it identify the substitute
check and investigate your claim.
What if I have more questions about substitute checks?
Contact your bank.
Visit the online information on Check 21, available at
http://www.federalreserve.gov/paymentsystems/truncation/.
Contact your state's consumer protection agency or
attorney
general's office for information on state laws that apply
to checks and substitute checks.
Learn More
What is electronic check conversion?
Electronic check conversion is a process in which your
check is used as a source of information -- for the check
number, your account number, and the number that
identifies
your financial institution. The information is then used
to
make a one-time electronic payment from your account --
electronic fund transfer. The check itself is not the
method of payment.
How will I know that my check is being used for electronic
check conversion?
When you provide your check, you must be given notice that
information from your check will be used to make an
electronic payment from your account. The notice is
required by the federal law that applies to electronic
fund
transfers--the Electronic Fund Transfer Act and the
Federal
Reserve Board's Regulation E. Notice may be provided in
different ways. For example, a merchant may post a sign at
the register or may give you a written notice that you'll
be asked to sign.
What are some of the differences between electronic check
conversion and using my check as payment?
- Your electronic transaction may be processed faster than
a check. Be sure you have enough money in your account at
the time you make the purchase.
- You have different consumer rights with an electronic
check conversion transaction than when you use your check
as payment. For example, with electronic check conversion,
you have the right to an investigation by your financial
institution when an error occurs.
What are my rights in electronic check conversion
transactions?
- You have the right to receive notice when you provide
your check telling you that information from the check
will
be used to make an electronic payment from your account.
- You have the right to receive notice when you provide
your check telling you of any fee that the merchant will
collect from your account electronically if you do not
have
enough money in your account to cover the transaction.
This
fee is similar to a "bounced check" fee.
- You have the right to receive a receipt when you make a
purchase at a store. The receipt will contain information
about the transaction, including: Date, Amount, Location,
Name of merchant.
- You have the right to have this same information
included
as part of the regular account statement from your
financial institution.
- You have the right to ask your financial institution to
investigate any electronic fund transfers from your
account
that you believe are unauthorized or incorrect.
What should I do if I have a problem with an electronic
check conversion transaction?
Always review your regular account statement from your
financial institution. You should immediately contact your
financial institution if you see a problem. Were you
charged the wrong amount? Were you charged twice for the
same transaction? You have only 60 days (from the date your
statement was sent) to tell the financial institution about
the problem. Depending on the circumstances, the financial
institution may take up to 45 days from the time you notify
it to complete its investigation.
With electronic check conversion, may I use the same check
more than once?
No. An electronic check conversion transaction is a one-
time electronic payment from your account. If you were to
use the same check for more than one transaction and you
had a problem with one of the transactions, your financial
institution might have difficulty investigating the problem
because the same check number would appear more than once
on your statement.
Can electronic check conversion occur if I mail a check to
pay a bill?
Yes. For example, let's assume that each time you get your
insurance bill there is a notice. It tells you that when
you mail a check, information from that check will be used
to make an electronic payment from your account. If you
then send a check, you have agreed to electronic check
conversion. Unlike what happens when you make a purchase
at
a store, however, you won't receive a receipt. Your check
won't be returned to you with your account statement from
your financial institution because the transaction was
processed as an electronic fund transfer, not as a check
transaction.
As with electronic check conversions in stores, be sure
you
have enough money in your account when you mail your
check,
keep records of your payments, and check your account
statements from your financial institution to make sure
the
amounts charged are correct.
What if I don't want my check to be used for electronic
check conversion?
If you don't want your check to be used for electronic
check conversion, you may have to provide another form of
payment (for example, cash, debit card, or credit card).
What if I have a question or problem with an electronic
check conversion?
Contact your financial institution. For information on
state laws that may apply to electronic check conversion,
contact your state's consumer protection agency or
attorney
general's office.
Where can I find merger and other types of applications?
Different types of application forms are required
depending on the status of the applicant organization. The
Board of Governors' Web site provides detailed
instructions in the Application Filing Information
section.
Learn More
How can I reclaim a lost or abandoned bank account?
First, if possible, contact the financial institution
where you opened the account. If the institution no longer
exists,
contact your state banking agency. Provide the
agency with as much as detail as possible, including the
financial institution's name, the account number, and the
exact name(s) on the account.
Learn More
What is the prime rate?
The prime rate (sometimes also referred to as the
"base" or "reference" rate) is a
benchmark rate used by institutions for pricing business
and other credit. Institutions adjust this rate from time
to time in response to changes in market conditions.
Institutions may set this rate internally or may adopt as
their own a published rate (for example, the prevailing
prime rate as
reported in the financial press). Interest rates for most
consumer loans are generally higher than the prime rate
and are determined by the particular financial institution
making the loan. A comprehensive explanation of various
commercial and consumer interest rates,
"Interest Rates: An
Introduction," is
available at Federal Reserve Bank of New York website.
Prime interest rates going back to 1929 are available
on the Research Department�s website of the Federal
Reserve Bank of St. Louis located.
Current and historical data on most interest rates are
available at the Federal Reserve Board website.
Does the Federal Reserve control or set the prime rate?
No. Banks set their own rates based on the demand for
various kinds of loans, on the cost of money to the banks,
and on the administrative costs of making loans.
What is a routing number and where can I get information
about valid routing numbers and the financial institutions
to which they have been assigned?
A routing number (SOMETIMES ALSO KNOWN AS AN "ABA
NUMBER," A "TRANSIT NUMBER," OR A
"ROUTING TRANSIT NUMBER") is a nine-digit number
that is assigned to a bank to identify the bank and the
check-processing region in which the bank is located.
Routing numbers are most commonly seen on the bottom of
checks (in the lower left-hand corner for personal
checks). The Federal Reserve does not assign bank routing
numbers. If you have a question about a routing number on
a check you have received, you should consult with your
bank to determine the origin and validity of the routing
number.
How can I file a consumer complaint about a bank?
First try to settle the problem directly with the bank.
This may involve contacting the bank's customer service
representative or bank management for assistance. If you
are still unable to resolve the problem, you can file a
complaint about the bank, or other type of financial
institution, with the Federal Reserve System. The Federal
Reserve is responsible for carrying out many of the
federal laws that protect consumers in their dealings with
financial institutions.
Learn More
How can I get a copy of my credit report?
The Fair Credit Reporting Act (FCRA) requires each of the
nationwide consumer reporting companies -- Equifax,
Experian, and TransUnion -- to provide you with a free
copy of your credit report, at your request, once every 12
months. The three nationwide consumer reporting companies
have set up a central website, a toll-free telephone
number, and a mailing address through which you can order
your free annual report:
For more information, visit the FTC's Your Access to Free Credit
Reports.
Learn More
What is TARP?
TARP stands for "Troubled Asset Relief Program." TARP was
established under the Emergency Economic Stabilization Act
of 2008 (EESA) was signed into law on October 3, 2008,
during a time of tremendous financial upheaval and
economic uncertainty. TARP was established with the
specific goal of stabilizing the United States financial
system and preventing a systemic collapse. Treasury has
established several programs under the TARP to stabilize
the financial system and has now created the Financial
Stability Program to further stabilize the financial
system, restore the flow of credit to consumers and
businesses and tackle the foreclosure crisis to keep
millions of Americans in their homes.
For more information:
http://www.financialstability.gov/roadtostability/programs.
htm
Learn More
What foreclosure resources are provided by the Federal
Reserve?
There is a "Mortgage Foreclosure Resources" section on the
Federal Reserve Board's public website that directs
consumers to many sources of information relating to
foreclosure. Mortgage Foreclosure Resources includes
links to regional Foreclosure Resource Centers as well as
to resources for small municipalities, housing counselors,
and consumer and community groups:
http://federalreserve.gov/consumerinfo/foreclosure.htm
Learn More