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Failed Bank Information
NetBank, Alpharetta, GA, Closing Information
New Toll Free Number 1-(800)-323-6111
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- Introduction
- Press Release
- Question and Answer Sheet for NetBank
- Acquiring Financial Institution
and Your Insured Deposits
- Banking Services
- Loan Customers
- Possible Claims Against the Failed Institution
- Priority of Claims
- Dividend Information
- Brokered Deposits
- Balance Sheet
Summary
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| I. Introduction |
On September 28, 2007, NetBank,
Alpharetta, Georgia was
closed by the
Office of Thrift Supervision
and the Federal Deposit Insurance Corporation (FDIC) was
named Receiver. All insured depositors are now customers of
ING Bank, fsb (ING DIRECT), member FDIC. No advance notice is given to the public when a financial institution is
closed.
The FDIC has assembled useful information
regarding your relationship with this institution. Besides a checking account, you
may have Certificates of Deposit, a car loan, a business checking account, a commercial
loan, a Social Security direct deposit, and other relationships with the institution. The
FDIC has compiled the following information which should help answer many of your
questions.
IMPORTANT NOTICE: ING DIRECT and the FDIC as Receiver for NetBank will not ask you for personal identifiable information (PII).
PII includes such items as name, address, social security number, driver
license number, etc. All appropriate PII has transferred to the FDIC and/or
the ING DIRECT . You should assume that any e-mail requests to provide PII
are fraudulent. At a later time, the FDIC and/or the ING DIRECT may ask
you to verify PII contained in the former banks records, but they will not ask
you to provide additional PII in an unsolicited e-mail. Depositors speaking
to the FDIC will be asked to verify the last four numbers of their social
security number only. If a depositor is out of the country, they will
also be asked to verify their address and account number.
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| II. Press
Release |
The FDIC has issued a press
release (PR-81-2007) about the institution’s closure. If you represent a media
outlet and would like information about the closure, please contact
David Barr at 202-898-6992.
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| IV. Acquiring
Financial Institution and Your Insured Deposits |
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All insured deposit accounts have been
transferred to ING DIRECT ("assuming institution")
and will be available immediately.
The NetBank web site will be
closed from 3:00 pm to 5:00 pm EST, on September 28th and will reopen in
a read only mode. Normal online
services will be restored
in the early evening Sunday, September 30th.
ING DIRECT is the operating name for ING Bank, fsb.
Principal and interest on insured accounts,
through September 28, 2007, are fully insured by the FDIC, up to the insurance limit of
$100,000. You will receive full payment for your insured account. Certain entitlements and
different types of accounts may be insured for more than the $100,000 limit. IRA funds are
insured separately from other types of accounts, up to a $250,000 limit.
If it is determined that you have uninsured
funds, the FDIC will generate and mail to you a Receiver Certificate. This certificate
entitles you to share proportionately in any funds recovered through the disposal of the
assets of NetBank. This means that you may eventually recover some of your
uninsured funds.
All accounts that exceed the $100,000 insurance
limit, and/or all accounts that appear to be related and exceed this limit,
are reviewed by the FDIC to determine their ownership and insurance coverage.
If it appears that you
have potentially uninsured funds, an FDIC Claims Agent will contact you,
by either telephone or mail, regarding your account(s). Or, you may call
1-(800) 323-6111 and arrange a personal telephone interview with a Claims
Agent. The Claims Agent may direct you to download and submit a
particular form that will assist in expediting the processing of your claim.
List of Affidavits,
Declarations, and Forms available for download
Your transferred deposits will be separately
insured from any accounts you may already have at ING DIRECT for six months after the failure of NetBank. Checks that
were drawn on NetBank that did not clear before the institution closed will be honored
up to the insurance limit. You may speak to an FDIC representative
regarding deposit insurance by calling:
1-(800) 323-6111.
You may withdraw your funds from any transferred
account without an early withdrawal penalty until you enter into a new deposit agreement
with ING DIRECT by either making a deposit to or a withdrawal from your
account, provided the deposits are not pledged as collateral for loans.
For all questions regarding new loans and the
lending policies of ING DIRECT, please visit
their web site:
ING DIRECT
For additional information on
deposit insurance visit EDIE the FDIC's Electronic Deposit Insurance
Estimator.
EDIE
- FDIC's Electronic Deposit Insurance Estimator
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V. Banking Services |
You may continue to use the services to which you
previously had access, such as automatic teller machines.
Your checks will be processed as usual. All
outstanding checks will be paid against your available insured balance(s) as if no change
had occurred.
ING DIRECT will contact you soon regarding any changes in the
terms of your account. If you have a problem with a merchant refusing to accept your
check, please contact
ING DIRECT at
1-888-256-6932. An account representative will clear up any confusion about the
validity of your checks.
After September 28, 2007, your account will earn
interest at a rate determined by
ING DIRECT. You will be notified by letter
regarding this matter.
Your automatic direct deposit(s) should be transferred automatically to
ING DIRECT.
The BillPay
feature on your account was temporarily disabled, but has been reactivated.
All recurring transactions have been processed.
You should contact ING DIRECT, however, to discuss your account(s) and to
insure that service is not delayed or discontinued.
All your deposit account histories and records will be transferred to
your assuming institution. If ING DIRECT requires any
additional signatures or forms, it will notify you. If you have any
questions or special requests, you may contact a representative of ING
DIRECT at 1-888-256-6932.
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| VI. Loan
Customers |
If you had a loan with NetBank, you should continue to make your payments as usual. The terms of your loan
will not change under the terms of the loan contract because they are contractually agreed
to in your promissory note with the failed institution. Checks should be made to your former bank and sent to the same
address until further notice. |
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| VII. Possible Claims Against the Failed
Institution |
Claims against failed financial institutions
occur when bills sent to the institution remain unpaid at the time of failure. Shortly
after the failure, the FDIC sends notices directly to all known service providers to
explain the claim filing process.
Please note: there are time limits for
filing a claim, as specified in the notice.
If you provided a service for NetBank and have not
received a notice, please contact:
Federal Deposit Insurance Corporation
Receiver: NetBank
Attention: Claims Department, DRR
1601 Bryan Street
Dallas, Texas 75201
Or:
Call toll free 1-800-568-9161 |
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| VIII. Priority of Claims |
In accordance with Federal law, allowed claims
will be paid, after administrative expenses, in the following order of priority:
- Depositors
- General Unsecured Creditors
- Subordinated Debt
- Stockholders
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| IX. Dividend Information
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Dividend History on NetBank
Dividend
Information on Failed Financial Institutions |
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X. Brokered Deposits |
The FDIC offers a reference
guide to deposit brokers acting as agents for their investor clientele.
This site outlines the FDIC's policies and procedures that must
be followed by deposit brokers when filing for pass-through insurance
coverage on custodial accounts deposited in a failed FDIC Insured
Institution.
Attention NetBank Deposit Brokers:
For overnight packages sent after October 24, 2007,
please use the following address:
Federal Deposit Insurance Corporation
Attention: Lynette Martin
1601 Bryan Street
Dallas, Texas 75201
Deposit
Broker Processing Guide |
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| General Disclaimer |
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