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Failed Bank Information
Question and Answer Guide for Freedom Bank,
Bradenton, FL |
FDIC Call Center
Toll free number 1-800-591-2767
Hours of Operation - Eastern Time |
Friday,
October 31, 2008: |
6:00
p.m. – 9:00 p.m. |
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Saturday, November
1, 2008: |
9:00
a.m. – 5:00
p.m. |
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Sunday, November
2, 2008: |
12:00
p.m. –
5:00
p.m. |
|
Monday, November 3, 2008: |
8:00 a.m. – 8:00
p.m. |
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Thereafter: |
Monday to
Friday
Saturday and Sunday |
8:00 a.m. – 5:00 p.m. Closed |
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The following answers are provided to
the most commonly asked questions by customers of the failed
bank. The total balance in your account(s) has been transferred
to Fifth Third Bank, Grand Rapids, Michigan, and will
be available for transactions during regular business hours at
the former Freedom
Bank
branches.
DEPOSIT QUESTIONS
- Over $250,000
What if I have more than $250,000 in my accounts at Freedom Bank?
- Account Hold
I have been advised there is a hold on my account. What does that mean?
- ATM/Debit Card/Checks Can I continue to write checks or use my ATM/Debit card?
- Automatic Payments/Online Billpay Will my automatic payments through Billpay continue?
- Brokered
Deposits/Deposit Broker
I am a deposit broker or I have brokered deposits.
What do I need to do?- Checks not Honored A merchant will not honor my check. What
can I do?
- Claim Account(s) How do I claim my account(s)?
- Customer Impact How does this failure affect me?
- Deposits
Existing at Fifth Third Bank I
already have other deposit accounts with the new bank. When
combined with balances at this bank, my deposits exceed $250,000. Are
all funds insured?
- Direct
Deposits, Social Security What will happen
to my direct deposits?
- Early Withdrawal Penalty
Will I incur an early withdrawal penalty if I close my CD before maturity?
- Final Statement
How will I get my final account statement(s) from Freedom Bank?
- Interest Will I continue to earn interest at the same rate?
- Interest Check/Cashier's
Checks Can I cash my interest check or cashier's check?
- Internet Connection
Will my internet connection to Fifth Third Bank continue to work?
- IRAs
What if I have an Individual Retirement Account (IRA)? Will my savings still be insured?
- Lose Any Money? Will I lose anything on my deposit account?
- Outstanding Checks
What will happen to the checks which have not cleared my account?
- Records/Account Histories What if I need information regarding my account during the time Freedom Bank was in business?
- Tax Reporting - 1098/1099s
Who will send my 1098 and/or 1099 information
after the end of the year?
- Uninsured Will I collect my uninsured deposits?
- Wire Transfer Can
funds be wired to me?
LOAN QUESTIONS
- Automatic Payments Will my
automatic transaction payment still occur on its assigned date?
- Construction Loan Draws Will
construction draws continue? Will my project be completed?
- Construction Loan Voucher Control Will my subcontractors be paid as before?
- Escrows Will
you continue to pay my escrows?
- Fees Are there any changes to fees or charges due to this event?
- Lender and Contact
Names Who is my lender and has my loan contact
changed?
- Loan Sales Will my loan be sold?
- Line of Credit Advances - Home Equity Can
I continue to perform advances on my personal line of credit,
including my Home Equity Line of Credit (HELOC)?
- Loan in Process I have a loan currently in process. How is my loan impacted?
- Loan Sweeps Will my loan sweep be discontinued?
- Overdraft Line of Credit Will my overdraft line of credit continue to cover my overdrafts?
- Payments How
and where do I make my payments? Can I still pay by phone or
at the branch?
- Pre-payment Penalty If I refinance
with another lender, will my pre-payment penalty be waived?
- SBA Application in Process What will happen to my SBA loan application in process?
- What Happens Now What will happen to my loan?
GENERAL QUESTIONS
- All-Deposit
Transfer versus Insured Deposit Transfer Why
do all deposits, insured and uninsured, pass is some transactions
but not in others?
- FDIC
Insurance How can I find out more about Federal Deposit Insurance rules?
- Media
I represent a TV/Newspaper/Radio and would like some information.
- New Bank Insured?
Is the new bank insured by the FDIC?
- Safe Deposit Boxes
How can I claim the contents of my safe deposit box?
- Shareholders I am a shareholder
in Freedom Bank. What happens to my shares?
- Unpaid Bill
I did some work in Freedom Bank and have not yet been paid.
What should I do?
-
What Happened? What
happened, why did the bank fail?
- Work for FDIC - Contract or Employment
How can I apply to work for FDIC as a
contractor or employee?
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DEPOSIT QUESTIONS |
1. What if I have more than $250,000 in my accounts at Freedom Bank? |
All deposit accounts have been transferred in their entirety
to Fifth Third Bank, based in Grand Rapids, Michigan.
All former Freedom Bank offices will reopen for normal business hours on Monday,
November 3, 2008, as branches of Fifth Third Bank.
As an All-Deposit Transfer transaction, the total of all
deposit accounts, whether within FDIC insurance limits or not, have been
assumed by Fifth Third Bank and will be available for business as usual.
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2.
I have been advised there is a hold on my account. What does that mean? |
It is possible a depositor’s account was held due to delinquent loans where the depositor is the borrower or guarantor. Additionally, any account pledged as collateral for a loan will continue to be held. A letter will be sent informing you of any holds placed by the FDIC, along with instructions on how to proceed. If you have any questions regarding these holds, please call your loan officer or the FDIC at the number provided in the letter. |
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3. Can I continue to write checks or use my ATM/Debit card? |
You will be able to continue using your personal checks at this time, and your ATM/Debit card will continue to work. The ATM machine will be unavailable for a short period of time on Friday for processing; however, it will be operational shortly after that is accomplished and will be available as usual. |
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4.
Will my automatic payments through Billpay continue? |
Yes. There will be no disruption in Billpay service. |
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5. I
am a deposit broker or I have a brokered deposits. What
do I need to do? |
All deposits have been transferred to Fifth Third Bank. You should
contact Fifth Third Bank for any future changes or agreements. If you are a
customer who has a Freedom Bank deposit through a broker, you must
contact your broker with any questions. |
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6.
A merchant will not honor my check. What can I do? |
You can provide a copy of this document or the press
release (www.fdic.gov/news/news/press/2008/pr08109.html)
since both documents state all deposits have been transferred to Fifth Third Bank,
and it is business as usual. Copies of this press release will be available
at the former Freedom Bank branches. Depositors or merchants can also
call the FDIC at 1-800-591-2767 or the former
Freedom Bank branches.
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7. How do I claim my account(s)? |
Your account(s) has already been transferred to Fifth Third Bank, and your
account(s) will be handled as usual. Any withdrawal, renewal, or additional
deposits will “claim” your account. Please be advised that if there is no
activity in your account in the next 18 months, that money will be turned over
to your state as unclaimed property. Unclaimed property can be located by visiting www.missingmoney.com or
contacting your state’s treasurer’s office or office of unclaimed property. |
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8. How
does this failure affect me? |
All deposits (both insured and uninsured) of Freedom Bank have been transferred
to Fifth Third Bank, and it will be business as usual. If you held an account
at Freedom Bank, you now have an account at Fifth Third Bank that is available
to you at your former Freedom Bank branches during regular business hours. If you had a loan with Freedom Bank, please continue to make your payments to the same address as you have in the past until you are instructed otherwise. Continue to make your checks payable to Freedom Bank.
The former Freedom Bank locations will reopen for normal business hours on
Monday, November 3, 2008. You will
have continued access to your money through your ATM/debit card and by writing
checks.
Can Freedom Bank customers use Fifth Third Bank branches?
No, not at this time. During the transition of Freedom Bank records to Fifth Third Bank systems, Freedom Bank customers should continue to conduct their banking
business at former Freedom Bank branches. You will be notified when you can
use Fifth Third Bank branches.
Similarly, existing Fifth Third Bank customers cannot use former Freedom
Bank branches and should continue to conduct their business at Fifth Third Bank branches.
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9. I
already have other deposit accounts with the new bank. When
combined with balances at this bank, my deposits exceed $250,000. Are
all funds insured? |
The transferred accounts will be separately insured for at least six months after the merger. This grace period gives a depositor the opportunity to restructure his or her accounts, if necessary.
CDs from the assumed bank are separately insured until the earliest maturity date after the end of the six-month grace period. CDs that mature during the six-month period and are renewed for the same term and in the same dollar amount (either with or without accrued interest) continue to be separately insured until the first maturity date after the six-month period. If a CD matures during the six-month grace period and is renewed on any other basis, it would be separately insured only until the end of the six-month grace period.
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10. What
will happen to my direct deposits? |
Direct Deposits will continue as normal, including Social Security checks. If you need to change anything in the future, please contact or visit your former Freedom Bank branch location to make those arrangements. |
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11. Will
I incur an early withdrawal penalty if I close my CD before maturity? |
No. You may withdraw funds from any transferred account without an early
withdrawal penalty until you enter into a new deposit agreement with your new
bank. Entering into a new deposit agreement can be done by either renewing
your CD or making a deposit to, or a withdrawal from, your account. |
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12. How
will I get my final account statement(s) from Freedom Bank? |
You will receive your account statements at the same time you have received them in the past. |
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13.
Will I continue to earn interest at the same rate? |
The interest on all interest-bearing deposits accrued through Friday, October 31, 2008,
will be paid at the same rate(s). Fifth Third Bank will be reviewing rates
and will provide further information soon. All outstanding CDs will continue
to accrue interest at the contract rate until maturity. If you deposited funds through a broker, the interest will accrue and be
paid through Friday, October 31, 2008. |
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14. Can
I cash my interest check or cashier's check? |
Interest checks and cashier's checks will continue to clear. |
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15. Will my Internet connection to Freedom Bank
continue to work? |
Yes. |
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16. What
if I have an Individual Retirement Account (IRA)? Will my
savings still be insured? |
Yes, all deposits, including IRAs have been transferred in their entirety to Fifth Third Bank. IRA funds are insured separately from other types of accounts up to $250,000.
If you close your IRA before maturity, you have 60 days to roll this over
into another retirement vehicle. You should consult IRS Publication 590 and/or
your tax advisor concerning the possible tax consequences of such distribution.
IRS Publication 590 may be obtained by contacting your local IRS office or
via the Internet at www.irs.gov. |
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17. Will
I lose anything on my deposit account? |
No. All accounts have been transferred in their entirety to Fifth Third Bank and will be available starting on
Monday, November 3, 2008. |
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18. What
will happen to the checks which have not cleared my account? |
Checks drawn on Freedom Bank that did not clear before Friday, October 31,
2008, will be honored up to your available balance. |
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19.
What if I need information regarding my account during the time Freedom Bank
was in business? |
Please contact a representative of your new bank at your former Freedom Bank branch location to obtain a copy of any records you may need or visit your branch. |
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20. Who
will send my 1098 and/or 1099 information after the end of the year? |
Fifth Third Bank will be responsible for mailing your 1099
tax information. Your 1098 reporting will be done by the FDIC or the servicer
of
your loan.
You will be notified of any changes in ownership or servicing of your loan. |
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21. Will
I collect my uninsured deposits? |
All deposits have been transferred in their entirety to Fifth Third Bank; therefore,
there are no uninsured deposits. |
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22. Can
funds be wired to me? |
Please contact your former Freedom Bank branch location to obtain information regarding your wire request. |
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LOAN QUESTIONS |
23.
Will my automatic transaction payment still occur on its assigned date? |
You should experience no disruption in this service. We encourage you to check your bank account the day after your scheduled draft to verify the transaction. If the transaction did not occur, please notify your loan officer and we will research your loan. |
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24.
Will construction draws continue? Will my project be completed? |
Each loan is being reviewed independently, and you should direct your questions to your loan officer. These will be determined on a case-by-case basis. |
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25.
Will my subcontractors be paid as before? |
Each loan is being reviewed independently and will be determined on a case-by-case basis. You should direct your questions to your loan officer. |
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26.
Will you continue to pay my escrows? |
All services previously performed related to your loan will continue. Should you receive notification that any portion of your taxes or insurance were not paid, please notify your loan officer immediately. |
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27.
Are there any changes to fees or charges due to this event? |
No. The current fee structure will remain the same.
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28.
Who is my lender and has my loan contact changed? |
Your loan is currently owned by the FDIC and is being serviced by all of the same personnel with whom you have worked in the past. All prior contacts remain the same. |
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29.
Will my loan be sold? |
Your loan may be sold at a future undetermined date. If that occurs, you will be notified in advance through written correspondence. If you are concerned about whom your future lender or servicer will be, you have the right to independently refinance your loan with another lender. |
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30.
Can I continue to perform advances on my personal line of credit, including
my Home Equity Line of Credit (HELOC)? |
All personal lines of credit, including HELOCs have been suspended at this
time. You may contact Fifth Third Bank at Fifth Third Bank at 1-866-458-7290 to
discuss establishing a borrowing relationship. |
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31.
I have a loan currently in process. How is my loan impacted? |
Please contact your loan officer directly.
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32.
Will my loan sweep be discontinued? |
This will be determined on a case-by-case basis. Please contact your loan officer. |
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33.
Will my overdraft line of credit continue to cover my overdrafts? |
Yes. These lines have been transferred to Fifth Third Bank. Please contact your new bank at 941-782-1650 if you have additional questions regarding your accounts. |
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34.
How and where do I make my payments? Can I still pay by phone or at
the branch? |
You should continue to make your payments as agreed. Make checks payable to Freedom Bank and utilize the same payment address information.
You may continue to make your payments at the branch or by phone via check or credit card.
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35.
If I refinance with another lender, will my pre-payment penalty be waived? |
This will be determined on a case-by-case basis.
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36.
What will happen to my SBA loan application in process? |
The FDIC as Receiver for Freedom Bank will not be originating any new loans.
If your loan has been approved by the SBA, but is not yet funded, please contact your loan officer. He will direct you to the proper SBA contact to help you locate another approved lender.
If your loan is in process, but is not yet approved by the SBA, we will release your SBA package on file with us to you, and you will need to apply with another SBA-approved lender. Please contact your loan officer to make arrangements to retrieve your application from the bank.
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37.
What will happen to my loan? |
Each loan is currently being reviewed independently to determine the best action for that individual loan. If you are concerned about whom your future lender or servicer may be, you have the right to independently refinance your loan with another lender. |
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GENERAL QUESTIONS |
38. Why
do all deposits, insured and uninsured, pass in some transactions but
not in others? |
The FDIC is required by law to employ the least-cost resolution measure for each failed financial institution. The most frequent result is for the FDIC to transfer only the insured deposits in a merger transaction. The FDIC is only able to transfer all deposits if the uninsured amounts are covered by the premium. The FDIC has been able to transfer all deposits in about 25% of the failures over the past 15 years.
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39. How
can I find out more about Federal Deposit Insurance rules? |
You may access our website, which contains deposit insurance information and an Electronic Deposit Insurance Estimator
(EDIE):
You may also order Your Insured Deposits or any other FDIC publication:
FDIC Public Information Center
3501 North Fairfax Drive
Room E-1002
Arlington, VA 22226
703-562-2200 Phone
703-562-2296 Fax
publicinfo@fdic.gov
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40.
I represent a TV/Newspaper/Radio and would like some information. |
Please contact the Office of Public Affairs:
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Washington, DC
|
David Barr 202-898-6992
703-622-4790
dbarr@fdic.gov |
Andrew Gray 202-898-7192 202-494-1049 angray@fdic.gov |
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41. Is
the new bank insured by the FDIC? |
Yes. Your deposit at Fifth Third Bank is insured by the FDIC,
and each depositor is insured to at
least $250,000, as established by law. |
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42. How
can I claim the contents of my safe deposit box? |
It is business as usual. You may go to your branch and access your safe deposit box or make appointments by calling your former Freedom Bank branch location. |
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43.
I am a shareholder in Freedom Bank. What happens to my shares? |
Shareholders have a claim against the receivership; however, they have the lowest priority of claim. You should discuss this with an accountant and/or the IRS concerning the exact requirements necessary to recognize the investment as a loss for tax purposes. |
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44. I
did some work for Freedom Bank and have not yet been paid. What
should I do? |
Please send your bills to the following address:
FDIC as Receiver for: Freedom Bank
1601 Bryan Street
Dallas, TX 75201 |
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45. What
happened, why did the bank fail? |
Freedom Bank, Bradenton, FL was closed Friday, October 31, 2008, by the Florida
Office of Financial Regulation. Subsequently, the Federal Deposit Insurance
Corporation (FDIC) was appointed Receiver. According to regulatory policy,
there is no advance notice given to the public. Please see the Florida Office
of Financial Regulation’s Press Release for more information.
The good news is that no one lost any deposits as a result
of the closure of Freedom Bank. To protect depositors, the FDIC Board of
Directors approved the assumption of ALL of Freedom Bank’s
deposits by Fifth Third Bank, headquartered in Grand Rapids,
Michigan.
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46. How
can I apply to work for FDIC as a contractor or employee? |
For contracting opportunities with the FDIC, you may call 1-866-308-4470
for more information. You may also email ProcurementOpportunities@fdic.gov. Please
include a statement of your corporate capabilities, contact information, and
Minority or Women-Owned Business (MWOB) status, if any.
You must also register in the Central Contractor Registration database at www.ccr.gov.
To review positions currently available at the FDIC, visit Careers at FDIC (www.fdic.gov/about/jobs/index.html). |
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