Be Careful - Bogus Banks

[scfr]

Here's a link to a story from our local paper this morning about people who bought what they thought were CDs from legitimate FDIC-insured banks on-line (Federal Savings), but now they don't know where their money is:

Unlicensed agency sold high-interest securities

I feel so sorry for the folks who got scammed.

If there's an upside to this (and it's pretty much all downside), it is that my husband will no longer roll his eyes at me when I insist on verifying at the FDIC's web site (FDIC: Federal Deposit Insurance Corporation) that a bank is really FDIC-insured even if the FDIC logo is on a web site or door.

As Sergeant Phil Esterhaus used to say on Hill Street Blues, "Hey, let's be careful out there."

[creditcardfree]

That is great advice! Same could be said of checking directly with the Better Business Bureau. Check the site instead of relying on the symbol appearing in the advertisement.

[Aleta]

scfr: Thank you for the information. We all need to keep this in mind because there are so many banks out there right now offering so much for you to just open an account and it would be sooooooooooooeasy for the scammers to just fit right in there now with all of the frenzy. It's good that you're checking out the banks. That's heads up.

[Scanner]

YOu know. . .when I first came here with all the hub-bub about HBSC, I went to the website.

I couldn't find it as FDIC insured. It was very hard to navigate IMO but I admit I only toyed around for 10 minutes or so.

[scfr]

I went to the website.

I couldn't find it as FDIC insured. It was very hard to navigate IMO but I admit I only toyed around for 10 minutes or so.

Click on "Deposit Insurance"
Then, Click on "Bank Find" and type in the bank's name

[MonkeyMama]

Oh yes I always verify FDIC independently and I am quite picky about my banks. BBB is a good tip too.

That is really awful though... Good reminder that I am not overly paranoid then.

[th_tan]

I wish I knew about BBB's website before I was scammed $600, but they give you a good idea of wether or not the business is legit.

[JanH]

In this area, people logging on to their credit union's website were redirected to another bogus site. That's scary! Thanks for the info about the FDIC stuff!

[Duchesse]

I remember seeing their pop up. 6 month CD 6.25%!

I clicked on it and went to the site and looked. Later I was unable to arrive at that site again even after putting Federal Savings on my browser to search. Red flags appeared.

Later I used the toll free number I had taken down when I first visited the site. When I called I was unable to talk to a person weekends or week days. They wanted me to leave a message! Red flags went up again.

I don't know this womans' experience but I do remember that there were too many red flags and I couldn't get any satifactory answers at the site or on the phone.

[scfr]

I remember seeing their pop up. 6 month CD 6.25%!

I clicked on it and went to the site and looked. Later I was unable to arrive at that site again even after putting Federal Savings on my browser to search. Red flags appeared.

Later I used the toll free number I had taken down when I first visited the site. When I called I was unable to talk to a person weekends or week days. They wanted me to leave a message! Red flags went up again.

I don't know this womans' experience but I do remember that there were too many red flags and I couldn't get any satifactory answers at the site or on the phone.

I'm so glad to hear you did some checking, trusted your instincts, and did not give them any of your money!!

[DayByDay]

I cannot find E-loan on the FDIC site. All my savings is there. Is anyone else able to find it?

[DayByDay]

I cannot find E-loan on the FDIC site. All my savings is there. Is anyone else able to find it?

Further info on my own question: E-Loan's site says this:

E-LOAN is an affiliate of Banco Popular North America (BPNA), a New York state chartered bank insured by the FDIC. All deposits are insured for the maximum amount allowed by law. E-LOAN accounts and other accounts with BPNA are combined for FDIC insurance. For more information on FDIC Insurance coverage, please visit FDIC: Federal Deposit Insurance Corporation.

ETA: Found this: Popular, Inc. owns both E-Loan and BPNA. What I don't understand is how E-loan can say my money is FDIC insured when they themselves are not FDIC insured.

Confusing stuff.

[scfr]

Further info on my own question: E-Loan's site says this:

E-LOAN is an affiliate of Banco Popular North America (BPNA), a New York state chartered bank insured by the FDIC. All deposits are insured for the maximum amount allowed by law. E-LOAN accounts and other accounts with BPNA are combined for FDIC insurance. For more information on FDIC Insurance coverage, please visit FDIC: Federal Deposit Insurance Corporation.

ETA: Found this: Popular, Inc. owns both E-Loan and BPNA. What I don't understand is how E-loan can say my money is FDIC insured when they themselves are not FDIC insured.

Confusing stuff.

DaybyDay, I can understand why you'd be concerned and why it's confusing. I also checked the FDIC web site; no record of E-Loan, but BPNA is insured. On the E-Loan site it says all savings deposits are through BPNA. I'm not seeing anything that raises red flags, but I can understand why you'd want to know for sure if your funds are insured.

I'd suggest you pull out your 1099 for 2006 and your most recent monthly statement .... Do they mention that your deposits are with BPNA?

[DayByDay]

I just opened the account this year, so no 1099. I did check a statement and noticed it does say "E-Loan/Banco Popular."

I went back to the FDIC web site and submitted my questions about E-Loan, so I'll be awaiting their reply.

[DayByDay]

I received this reply from FDIC:

Deposit products offered by E-loan are opened through Banco Popular North America. Banco Popular North America has been FDIC insured since 01/02/1999. The certificate number is 34967. The main office is located at: 7 WEST 51ST STREET, NEW YORK, NY 10019. Deposits originated through E-loan would be insured as if opened directly with Banco Popular.