35866 Federal Register / Vol. 87, No. 114 / Tuesday, June 14, 2022 / Rules and Regulations 

1See 12 U.S.C. 5481(12), (14), 5511. 

2See 12 U.S.C. 4301–4313; 12 CFR pt. 1030; 

CFPB Exam Handbook, at TISA 1, https://

files.consumerfinance.gov/f/documents/cfpb_

supervision-and-examination-manual.pdf. 

3See 15 U.S.C. 1693–1693r; 12 CFR pt. 1005; 

CFPB Exam Handbook, at EFTA 1, https://

files.consumerfinance.gov/f/documents/cfpb_

supervision-and-examination-manual.pdf. 

4See 12 U.S.C. 1831t(b)–(f); 12 CFR pt. 1009. 

5See 12 U.S.C. 5531, 5536; CFPB Exam 

Handbook, at UDAAP 1, https://files.consumer

finance.gov/f/documents/cfpb_supervision-andexamination-manual.pdf. 

6Additionally, accounts at federally insured 

credit unions are insured through the National 

Credit Union Share Insurance Fund (NCUSIF). See 

NCUA, How Your Accounts are Federally Insured 

(Feb. 2018), https://www.ncua.gov/files/ 

publications/guides-manuals/NCUAHowYourAcct

Insured.pdf. 

7See FDIC, Your Insured Deposits, at 3 (Jan. 

2020), https://www.fdic.gov/resources/depositinsurance/brochures/documents/your-insureddeposits-english.pdf. 

Currency, the Board of Governors of the 

Federal Reserve System, and the 

National Credit Union Administration. 

See, e.g., 12 U.S.C. 5516(d), 5581(c)(2) 

(exclusive enforcement authority for 

banks and credit unions with $10 

billion or less in assets). Some Federal 

consumer financial laws are also 

enforceable by other Federal agencies, 

including the Department of Justice and 

the Federal Trade Commission, the 

Farm Credit Administration, the 

Department of Transportation, and the 

Department of Agriculture. In addition, 

some of these laws provide for private 

enforcement. 

Consumer Financial Protection 

Circulars are intended to promote 

consistency in approach across the 

various enforcement agencies and 

parties, pursuant to the CFPB’s statutory 

objective to ensure Federal consumer 

financial law is enforced consistently. 

12 U.S.C. 5511(b)(4). 

Consumer Financial Protection 

Circulars are also intended to provide 

transparency to partner agencies 

regarding the CFPB’s intended approach 

when cooperating in enforcement 

actions. See, e.g., 12 U.S.C. 5552(b) 

(consultation with CFPB by State 

attorneys general and regulators); 12 

U.S.C. 5562(a) (joint investigatory work 

between CFPB and other agencies). 

Consumer Financial Protection 

Circulars are general statements of 

policy under the Administrative 

Procedure Act. 5 U.S.C. 553(b). They 

provide background information about 

applicable law, articulate considerations 

relevant to the Bureau’s exercise of its 

authorities, and, in the interest of 

maintaining consistency, advise other 

parties with authority to enforce Federal 

consumer financial law. They do not 

restrict the Bureau’s exercise of its 

authorities, impose any legal 

requirements on external parties, or 

create or confer any rights on external 

parties that could be enforceable in any 

administrative or civil proceeding. The 

CFPB Director is instructing CFPB staff 

as described herein, and the CFPB will 

then make final decisions on individual 

matters based on an assessment of the 

factual record, applicable law, and 

factors relevant to prosecutorial 

discretion. 

Rohit Chopra, 

Director, Consumer Financial Protection 

Bureau. 

[FR Doc. 2022–12729 Filed 6–13–22; 8:45 am] 

BILLING CODE 4810–AM–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Chapter X 

Consumer Financial Protection 

Circular 2022–02: Deceptive 

Representations Involving the FDIC’s 

Name or Logo or Deposit Insurance 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Consumer financial protection 

circular. 

SUMMARY: The Consumer Financial 

Protection Bureau (Bureau or CFPB) has 

issued Consumer Financial Protection 

Circular 2022–02, titled, ‘‘Deceptive 

representations Involving the FDIC’s 

Name or Logo or Deposit Insurance.’’ In 

this circular, the Bureau responds to the 

question, ‘‘When do representations 

involving the name or logo of the 

Federal Deposit Insurance Corporation 

(FDIC) or about deposit insurance 

constitute a deceptive act or practice in 

violation of the Consumer Financial 

Protection Act (CFPA)? ’’ 

DATES: The Bureau released this circular 

on its website on May 17, 2022. 

ADDRESSES: Enforcers, and the broader 

public, can provide feedback and 

comments to Circulars@cfpb.gov. 

FOR FURTHER INFORMATION CONTACT: Brad 

Lipton, Senior Counsel, Legal Division, 

at (202) 435–7700. If you require this 

document in an alternative electronic 

format, please contact CFPB_

Accessibility@cfpb.gov. 

SUPPLEMENTARY INFORMATION: 

Question Presented 

When do representations involving 

the name or logo of the Federal Deposit 

Insurance Corporation (FDIC) or about 

deposit insurance constitute a deceptive 

act or practice in violation of the 

Consumer Financial Protection Act 

(CFPA)? 

Response 

Covered persons or service providers 

likely violate the CFPA’s prohibition on 

deception if they misuse the name or 

logo of the FDIC or engage in false 

advertising or make misrepresentations 

to consumers about deposit insurance, 

regardless of whether such conduct 

(including the misrepresentation of 

insured status) is engaged in knowingly. 

Representations about deposit insurance 

may be particularly relevant with 

respect to new financial products or 

services, especially those involving new 

technologies such as digital assets, 

including crypto-assets. 

Analysis 

The Bureau administers a number of 

laws and regulations relating to the 

offering or providing of deposit 

accounts, including these provisions: 1

• The Truth in Savings Act and its 

implementing regulation (Regulation 

DD), which enable consumers to make 

informed decisions about their accounts 

at depository institutions through the 

use of uniform disclosures; 2

• The Electronic Fund Transfer Act 

and its implementing regulation 

(Regulation E), which protect consumers 

engaging in electronic fund transfers 

and remittance transfers; 3

• Portions of the Federal Deposit 

Insurance Act (FDI Act) and its 

implementing regulations, which 

require depository institutions lacking 

Federal deposit insurance to make 

certain disclosures; 4

• The CFPA, which, among other 

things, prohibits unfair, deceptive, or 

abusive acts or practices.5

Deposit insurance has long been a 

means to promote confidence in the 

banking system. The most common form 

of deposit insurance is administered by 

the Federal Deposit Insurance 

Corporation (FDIC).6 The FDIC insures 

deposits at FDIC-insured banks and 

savings associations up to the maximum 

deposit insurance amount, currently 

$250,000, per depositor, per FDICinsured bank, for each account 

ownership category.7

Representations about deposit 

insurance may be particularly relevant 

with respect to new financial products 

or services, especially those involving 

new technologies such as digital assets, 

including crypto assets. New 

technologies may yield significant 

benefits for consumers, workers, and 

small businesses. Nonetheless, 

especially with respect to new 


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Federal Register / Vol. 87, No. 114 / Tuesday, June 14, 2022 / Rules and Regulations 35867 

8See FDIC, Final Rule on False Advertising, 

Misrepresentation of Insured Status, and Misuse of 

the FDIC’s Name or Logo (adopted May 17, 2022), 

https://www.fdic.gov/news/board-matters/2022/ 

2022-05-17-notice-dis-a-fr.pdf. 

9This Circular does not constitute an 

interpretation of section 18(a)(4) of the FDI Act, 

rules adopted thereunder, or the authorities of the 

FDIC. 

10Specifically, FDI Act section 18(a)(4)(A) 

prohibits any person from representing or implying 

that any deposit liability, obligation, certificate, or 

share is insured or guaranteed by the FDIC if such 

deposit liability, obligation, certificate, or share is 

not insured or guaranteed by the FDIC (i) by using 

the terms ‘‘Federal Deposit,’’ ‘‘Federal Deposit 

Insurance,’’ ‘‘Federal Deposit Insurance 

Corporation,’’ any combination of such terms, or the 

abbreviation ‘‘FDIC’’ as part of the business name 

or firm name of any person, including any 

corporation, partnership, business trust, 

association, or other business entity; or (ii) by using 

such terms or any other terms, sign, or symbol as 

part of an advertisement, solicitation, or other 

document. 12 U.S.C. 1828(a)(4)(A). FDI Act section 

18(a)(4)(B) prohibits any person from knowingly 

misrepresenting (i) that any deposit liability, 

obligation, certificate, or share is insured by the 

FDIC if such deposit liability, obligation, certificate, 

or share is not so insured; or (ii) the extent to which 

or the manner in which any deposit liability, 

obligation, certificate, or share is insured by the 

FDIC if such deposit liability, obligation, certificate, 

or share is not so insured to the extent or in the 

manner represented. 12 U.S.C. 1828(a)(4)(B). 

11 12 U.S.C. 5531, 5536. 

12 12 U.S.C. 5481(5), (6). 

13 12 U.S.C. 5481(15)(A)(iv), (v); see also 12 

U.S.C. 5481(8). 

14See, e.g., CFPB v. Gordon, 819 F.3d 1179, 

1192–93 (9th Cir. 2016). 

15See, e.g., FTC v. Verity Int’l, Ltd., 443 F.3d 48, 

63 (2d Cir. 2006) (‘‘The deception need not be made 

with intent to deceive. . . .’’); FTC v. Bay Area 

Bus. Council, Inc., 423 F.3d 627, 635 (7th Cir. 2005) 

(‘‘The FTC is not, however, required to prove intent 

to deceive.’’); FTC v. Freecom Communications, 

Inc., 401 F.3d 1192, 1204 n.7 (10th Cir. 2005) 

(‘‘Unlike the elements of common law fraud, the 

FTC need not prove scienter, reliance, or injury to 

establish a [section] 5 violation.’’). 

16Certain categories of information are presumed 

to be material. In general, information about the 

central characteristics of a consumer financial 

product or service—such as costs, benefits, or 

restrictions on the use or availability—is presumed 

to be material. Express claims made with respect to 

a consumer financial product or service are 

presumed material. Implied claims are presumed to 

be material when evidence shows that the 

institution intended to make the claim (even though 

intent to deceive is not necessary for deception to 

exist). Omissions will be presumed to be material 

when the financial institution knew or should have 

known that the consumer needed the omitted 

information to evaluate the product or service. See 

CFPB Exam Handbook, at UDAAP 7, https://

files.consumerfinance.gov/f/documents/cfpb_

supervision-and-examination-manual.pdf. 

technologies, some market participants 

may seek to entice consumers to use 

their products or services by deceptively 

advertising that uninsured products or 

services are FDIC-insured. These 

misrepresentations disadvantage 

financial institutions that truthfully 

market FDIC-insured accounts to 

consumers. Such misrepresentations 

also harm consumers, who may find 

that their assets are not insured in a 

time of financial distress. 

The CFPB is issuing this circular to 

emphasize that covered persons and 

service providers are required to comply 

with the CFPA with respect to 

representations to consumers involving 

the name or logo of the FDIC and 

representations about deposit insurance. 

The CFPB is issuing this circular in 

connection with the FDIC’s adoption of 

a regulation on related subject matter 

involving section 18(a)(4) of the FDI 

Act, 12 U.S.C. 1828(a)(4).8 Thus, the 

circular is particularly focused on 

misrepresentations to consumers about 

FDIC insurance. This circular describes 

certain misrepresentations to consumers 

that can violate the CFPA’s prohibition 

on deceptive acts or practices in 

connection with a transaction with a 

consumer for a consumer financial 

product or service, or the offering of a 

consumer financial product or service.9

This circular notes that 

misrepresentations to consumers may 

violate the CFPA regardless of whether 

they are made knowingly. 

Section 18(a)(4) of the FDI Act, 12 

U.S.C. 1828(a)(4), prohibits any person 

from engaging in false advertising or 

misusing the name or logo of the FDIC 

to represent or imply that uninsured 

deposits are FDIC-insured and from 

making knowing misrepresentations 

about the extent or manner of deposit 

insurance provided to any deposits.10

Under the CFPA, covered persons and 

service providers are prohibited from 

committing or engaging in an unfair, 

deceptive, or abusive act or practice in 

connection with the offering or 

provision of a consumer financial 

product or service.11 A covered person 

includes any person that engages in 

offering or providing financial products 

or services for use by consumers 

primarily for personal, family, or 

household purposes.12 Financial 

products or services are defined to 

include, for example, engaging in 

deposit-taking activities, transmitting or 

exchanging funds, or otherwise acting as 

a custodian of funds or any financial 

instrument for use by or on behalf of a 

consumer, as well as (subject to certain 

exceptions) selling, providing, or 

issuing stored value or payment 

instruments.13

Material misrepresentations are 

‘‘deceptive’’ practices in violation of the 

CFPA.14 Like FDI Act section 

18(a)(4)(A), which prohibits any false 

advertising or misuse of the name or 

logo of the FDIC, but unlike under FDI 

Act section 18(a)(4)(B), which prohibits 

knowing misrepresentations regarding 

the extent or manner that deposits are 

insured, a misrepresentation to 

consumers may violate the CFPA’s 

prohibition on deception regardless of 

whether the misrepresentation was 

made knowingly.15 Additionally, 

disclaimers may not cure otherwise 

deceptive messages or practices. 

Covered persons or service providers 

likely violate the CFPA’s prohibition on 

deception if they misuse the name or 

logo of the FDIC or engage in false 

advertising or make misrepresentations 

to consumers about deposit insurance, 

regardless of whether such conduct 

(including the misrepresentation of 

insured status) is engaged in knowingly. 

Representations made by covered 

persons or service providers about FDIC 

insurance will typically be material.16

Accordingly, for example, if a person 

engages in or purports to engage in 

deposit-taking activity by accepting (or 

offering to accept) funds for use by 

consumers, and that person 

misrepresents that such funds are 

insured by the FDIC, that person likely 

violates the CFPA’s prohibition on 

deception, even if the misrepresentation 

was not made knowingly. Similarly 

deceptive are claims that consumer 

financial products or services are 

‘‘regulated’’ by the FDIC or ‘‘insured’’ or 

‘‘eligible for’’ FDIC insurance if those 

claims expressly or implicitly indicate 

that the product is FDIC-insured when 

that is not in fact the case. In particular, 

firms offering or providing digital assets, 

including crypto assets, may be 

particularly prone to making such 

deceptive claims to consumers about 

FDIC deposit insurance coverage. 

About Consumer Financial Protection 

Circulars 

Consumer Financial Protection 

Circulars are issued to all parties with 

authority to enforce Federal consumer 

financial law. The CFPB is the principal 

Federal regulator responsible for 

administering Federal consumer 

financial law, see 12 U.S.C. 5511, 

including the Consumer Financial 

Protection Act’s prohibition on unfair, 

deceptive, and abusive acts or practices, 

12 U.S.C. 5536(a)(1)(B), and 18 other 

‘‘enumerated consumer laws,’’ 12 U.S.C. 

5481(12). However, these laws are also 

enforced by State attorneys general and 

State regulators, 12 U.S.C. 5552, and 

prudential regulators including the 

Federal Deposit Insurance Corporation, 

the Office of the Comptroller of the 

Currency, the Board of Governors of the 

Federal Reserve System, and the 

National Credit Union Administration. 

See, e.g., 12 U.S.C. 5516(d), 5581(c)(2) 

(exclusive enforcement authority for 

banks and credit unions with $10 


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35868 Federal Register / Vol. 87, No. 114 / Tuesday, June 14, 2022 / Rules and Regulations 

1 12 U.S.C. 5536(a)(1)(B). 

2 12 U.S.C. 5481(12). 

3 12 U.S.C. 5552. 

4See, e.g., 12 U.S.C. 5516(d), 5581(c)(2). 

5 12 U.S.C. 5511(b)(4). 

billion or less in assets). Some Federal 

consumer financial laws are also 

enforceable by other Federal agencies, 

including the Department of Justice and 

the Federal Trade Commission, the 

Farm Credit Administration, the 

Department of Transportation, and the 

Department of Agriculture. In addition, 

some of these laws provide for private 

enforcement. 

Consumer Financial Protection 

Circulars are intended to promote 

consistency in approach across the 

various enforcement agencies and 

parties, pursuant to the CFPB’s statutory 

objective to ensure Federal consumer 

financial law is enforced consistently. 

12 U.S.C. 5511(b)(4). 

Consumer Financial Protection 

Circulars are also intended to provide 

transparency to partner agencies 

regarding the CFPB’s intended approach 

when cooperating in enforcement 

actions. See, e.g., 12 U.S.C. 5552(b) 

(consultation with CFPB by State 

attorneys general and regulators); 12 

U.S.C. 5562(a) (joint investigatory work 

between CFPB and other agencies). 

Consumer Financial Protection 

Circulars are general statements of 

policy under the Administrative 

Procedure Act. 5 U.S.C. 553(b). They 

provide background information about 

applicable law, articulate considerations 

relevant to the Bureau’s exercise of its 

authorities, and, in the interest of 

maintaining consistency, advise other 

parties with authority to enforce Federal 

consumer financial law. They do not 

restrict the Bureau’s exercise of its 

authorities, impose any legal 

requirements on external parties, or 

create or confer any rights on external 

parties that could be enforceable in any 

administrative or civil proceeding. The 

CFPB Director is instructing CFPB staff 

as described herein, and the CFPB will 

then make final decisions on individual 

matters based on an assessment of the 

factual record, applicable law, and 

factors relevant to prosecutorial 

discretion. 

Rohit Chopra, 

Director, Consumer Financial Protection 

Bureau. 

[FR Doc. 2022–12728 Filed 6–13–22; 8:45 am] 

BILLING CODE 4810–AM–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Chapter X 

Consumer Financial Protection 

Circular 2022–01: System of Consumer 

Financial Protection Circulars to 

Agencies Enforcing Federal Consumer 

Financial Law 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Consumer financial protection 

circular. 

SUMMARY: The Consumer Financial 

Protection Bureau (Bureau or CFPB) has 

issued Consumer Financial Protection 

Circular 2022–01, titled, ‘‘System of 

Consumer Financial Protection 

Circulars to Agencies Enforcing Federal 

Consumer Financial Law.’’ In this 

circular, the Bureau outlines its efforts 

to promote consistency among enforcers 

and fair competition in the market by 

launching a new system to provide 

guidance to other agencies with 

consumer financial protection 

responsibilities on how the CFPB 

intends to enforce Federal consumer 

financial law. 

DATES: The Bureau released this circular 

on its website on May 16, 2022. 

ADDRESSES: Enforcers, and the broader 

public, can provide feedback and 

comments to Circulars@cfpb.gov. 

FOR FURTHER INFORMATION CONTACT: 

Brian Shearer, Senior Advisor, Office of 

the Director; Brad Lipton, Senior 

Counsel, Legal Division, at (202) 435– 

7700. If you require this document in an 

alternative electronic format, please 

contact CFPB_Accessibility@cfpb.gov. 

SUPPLEMENTARY INFORMATION: The CFPB 

will issue Consumer Financial 

Protection Circulars to the broad set of 

government agencies responsible for 

enforcing Federal consumer financial 

law. 

The CFPB is the principal Federal 

regulator responsible for administering 

the Federal consumer financial laws, see 

12 U.S.C. 5511, including the Consumer 

Financial Protection Act’s prohibition 

on unfair, deceptive, and abusive acts or 

practices,1 and eighteen other 

‘‘enumerated consumer laws.’’ 2

However, the CFPB is not the only 

enforcer of these laws; enforcement 

responsibility is spread among a large 

set of State and Federal government 

agencies. This includes, most notably, 

State attorneys general and State 

regulators 3 and prudential regulators 

such as the Federal Deposit Insurance 

Corporation, the Office of the 

Comptroller of the Currency, the Board 

of Governors of the Federal Reserve 

System, and the National Credit Union 

Administration.4 Some Federal 

consumer financial laws are also 

enforceable by other Federal agencies, 

including the Department of Justice, the 

Federal Trade Commission, the Farm 

Credit Administration, the Department 

of Transportation, and the Department 

of Agriculture. In addition, some of 

these laws provide for private 

enforcement. 

Given the broad variety of agencies 

responsible for enforcing Federal 

consumer financial law, there is a risk 

that companies might encounter 

inconsistent enforcement strategies and 

approaches. One of the CFPB’s five 

statutory objectives is to ensure Federal 

consumer financial law is enforced 

consistently regardless of the status of a 

person as a chartered bank or nonbank.5

Many entities are subject to the 

jurisdiction of multiple agencies, and to 

maintain certainty of expectations for 

those companies with multiple 

regulators, it is important for State and 

Federal government agencies to 

consistently enforce the laws that the 

CFPB administers. Consistency is also 

imperative to creating a level playing 

field between companies that compete 

in the same market but are subject to the 

jurisdiction of different enforcers and 

Consumer Financial Protection 

Circulars will provide transparency to 

partner agencies regarding the CFPB’s 

intended approach when cooperating in 

enforcement actions. 

As described more fully below, 

Consumer Financial Protection 

Circulars will be policy statements 

under the Administrative Procedure Act 

and will be released publicly to increase 

transparency for the benefit of the 

public and regulated entities. Consumer 

Financial Protection Circulars will 

provide background information about 

applicable law, articulate considerations 

relevant to the CFPB’s exercise of its 

authorities and advise other parties with 

authority to enforce Federal consumer 

financial law. The Director of the CFPB 

will authorize issuance of each 

Consumer Financial Protection Circular, 

and the CFPB will publish them on its 

website and in the Federal Register. 

The CFPB is beginning to identify a 

number of issues that would benefit 

from clear and consistent enforcement, 

and the CFPB intends to issue new 

Consumer Financial Protection 

Circulars to advance these goals. The 


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