Banking

What is the difference between a bank and a credit union in Michigan?

Both banks and credit unions are regulated and supervised institutions and offer consumers many of the same services.
Both banks and credit unions may be organized under state law or under federal law.
A bank is a "for profit" corporation owned by its shareholders and is established to provide financial services to the general public.
A credit union is a "not for profit" corporation owned by its member depositors and is established solely for the benefit of its members

What is the difference between a state-chartered and national-chartered bank?

A bank may be chartered (organized) under either state or federal law. This determines what regulations the bank will operate under and who its primary regulator will be.
For the majority of consumers there is no difference in services between a state-chartered and national-chartered bank.

What is the maximum interest rate I can be charged by the bank issuing my credit card?

Interest rates on credit cards and other instruments are generally governed by the rules and regulations of the institution’s home state and primary regulator.
In Michigan there is no limit on credit card interest rates. The interest rate is set by agreement between the institution and the customer in a contract or agreement.

Is the money in my bank account safe? Where can I learn about deposit insurance?

Your deposits are insured for at least $250,000 by the Federal Deposit Insurance Corporation (FDIC).
The FDIC is a federal government agency and is backed by the full faith and credit of the United States.
For more details on deposit insurance including insurance for your specific situation please visit the FDIC Deposit Insurance Website or call the FDIC at 877-275-3342.

Can my bank transfer funds from my account without my consent?

A bank may transfer funds from an account to cover a delinquent account (loan payment, credit card payment, etc.) This is also known as the “Right of Offset”.
The “Right of Offset" or similar conditions is normally included in account agreements which customers agree to when they open accounts or apply for and receive loans.
Please refer to your account agreements for more information.

Is my bank required to disclose a fee prior to charging it?

Yes. Banks are required to disclose all fees prior to charging them.
Fees are usually disclosed in Account Agreements for each account/product.
Changes to fees after the initial disclosure/agreement must also be disclosed by mail, posting of notices, inclusion in monthly statements, and/or other means.

I have a complaint about my bank. Who should I contact?

Complaints against banks should be filed with their primary regulator.
For banks which have registered as operating in Michigan you can use the Service of Process Tool - Bank & Trust Resident Agents to determine the regulator of a bank operating in Michigan.
To file a complaint against a Michigan state-chartered bank, please complete the online complaint form. If you have any questions, please contact us toll-free at 877-999-6442. All complaints must be submitted in writing to the Department of Insurance and Financial Services (DIFS).
To file a complaint against a bank regulated by another state, please contact that agency. For a list of other state bank agencies go here: CSBS List of State Regulators.
To file a complaint against a national bank or federal savings association go here: Office of the Comptroller of the Currency.
For banks which are not operating in Michigan go here: FDIC Consumer Resource Center.
If you cannot determine the regulator for your bank or financial institution please contact us at 877-999-6442.

Who regulates my bank? How do I know if a bank is legitimate?

All legitimate banks are chartered and regulated by a regulatory authority.
Banks may have different regulators including the Michigan Department of Insurance and Financial Services, other state bank and financial services regulators, or the federal government.
For banks which have registered as operating in Michigan you can use the Service of Process Tool - Bank & Trust Resident Agents to determine the regulator of a bank operating in Michigan.
For banks which are not operating in Michigan go here: FDIC Consumer Resource Center.
If you cannot determine the regulator for your bank or financial institution or suspect that a bank is not legitimate, please contact us at 877-999-6442.

What happens to unclaimed or abandoned money in bank accounts?

In Michigan, unclaimed monies, including funds from dormant, inactive, or abandoned accounts is sent to the Michigan Department of Treasury – Unclaimed Property Division.
For more information on unclaimed property including how to report and forward unclaimed monies (escheating) go here: Michigan Unclaimed Property.
For accounts and or persons located in other states you should contact that state’s unclaimed property authority. See here for a list maintained by the FDIC: Nationwide Unclaimed Property Contacts.

I suspect fraud in my accounts. How do I report fraudulent activity?

You can contact the Department of Insurance and Financial Services Fraud Team in the following ways:
- Through our website at: Report Fraud
- By email to: difs-antifraud@michigan.gov
- By phone at 877-999-6442

How do I register an out-of-state bank as operating in Michigan?

Banks regulated by other states or the federal governments are generally required to provide notice to the Department of Insurance and Financial Services prior to beginning operations in Michigan.
Please email MI-DIFS-Banking@michigan.gov for assistance.

Frequently Asked Questions