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| Encryption | A method for ensuring the privacy and security of a consumer's personal finance information at a bank or financial institution Web site. Encryption is the process of scrambling data so that only the intended receiver can use it. To be effective, encryption needs to be used by both the sender and the receiver. Consumers should make sure it is being used when sending sensitive information. |
| Equal Credit Opportunity Act | A federal law that prohibits discrimination in credit transactions on the basis of race, color, religion, national origin, sex, marital status, age, source of income or the exercise of any right under the Consumer Credit Protection Act. |
| Equifax | One of the Big Three credit bureaus, along with Experian and Trans Union. |
| Experian | One of the Big Three credit bureaus, along with Equifax and Trans Union. |
| Fair Credit Billing Act | Passed by Congress in 1975 to help customers resolve billing disputes with card issuers. The act requires issuers to credit payments to a customer's account the day they are received. To be protected under the law, the consumer must write to the issuer within 60 days of the mailing date on the bill with the error. The issuer is then required to investigate and either correct the mistake or explain why the bill is correct within two billing cycles. The issuer also must acknowledge a customer's complaint in writing within 30 days. Each issuer is allowed to set specific payment guidelines. If any of the guidelines are not met, the issuer can take as many as five days to credit the payment. |
| Fair Credit Reporting Act | A federal law that governs what credit bureaus can report and for how long. It outlines procedures for correcting errors in credit reports. It requires credit bureaus to furnish copies of consumers' credit reports at their request. |
| Fair Debt Collection Practices Act | A federal law that prohibits certain methods of debt collection, such as harassment. |
| FDIC | Federal Deposit Insurance Corp. An agency of the U.S. government that manages the bank insurance funds, which insure deposits at banks and other qualifying financial institutions up to $100,000 per account in interest and principal. FDIC insurance is mandatory for all nationally chartered banks and all banks that are members of the Federal Reserve System. |
| Fed | Congress founded the Federal Reserve, the central bank of the United States, in 1913. It conducts the nation's monetary policy and regulates its banks in order to achieve a flexible and stable economy. The seven members of the Board of Governors of the Federal Reserve System are nominated by the President and confirmed by the Senate to serve 14-year terms. The chairman and the vice chairman of the board are named by the President from among the members and are confirmed by the Senate. They serve a term of four years. |
| Federal Advisory Council | An advisory group consisting of one member elected from each of the 12 Federal Reserve Districts who meet with the Federal Reserve Board of Governors at least four times each year to make recommendations on business and financial matters. |
| Federal Deposit Insurance Corporation | An agency of the U.S. government that manages the bank insurance funds, which insure deposits at banks and other, qualifying financial institutions up to $100,000 per account in interest and principal. FDIC insurance is mandatory for all nationally chartered banks and all banks that are members of the Federal Reserve System. |
| Federal Discount Rate | The interest rate at which an eligible financial institution may borrow funds directly from a Federal Reserve bank. Banks whose reserves dip below the reserve requirement set by the Federal Reserve's board of governors use that money to correct their shortage. The board of directors of each reserve bank sets the discount rate every 14 days. It's considered the last resort for banks, which usually borrow from each other. |
| Federal funds rate | The interest rate at which banks and other depository institutions lend money to each other, usually on an overnight basis. The law requires banks to keep a certain percentage of their customer's money on reserve, where the banks earn no interest on it. Consequently, banks try to stay as close to the reserve limit as possible without going under it, lending money back and forth to maintain the proper level. |
| Federal Open Market Committee | This 12-member committee meets eight times a year to set guidelines for the Federal Reserve regarding the sale and purchase of government securities in the open market. Its chief importance for consumers is that the FOMC can adjust the federal funds rate and the federal discount rate. Banks set their rates based on the FOMC's moves, and therefore the committee's actions effectively ratchet consumer interest rates upward or downward. The committee is comprised of the seven members of the Board of Governors; the president of the Federal Reserve Bank of New York, and four of the presidents of the other 11 reserve banks. |
| Federal Reserve Board | Congress founded the Federal Reserve, the central bank of the United States, in 1913. It conducts the nation's monetary policy and regulates its banks in order to achieve a flexible and stable economy. The seven members of the Board of Governors of the Federal Reserve System are nominated by the President and confirmed by the Senate to serve 14-year terms. The chairman of the Board of Governors is Alan Greenspan. The chairman and the vice chairman of the board are named by the president from among the members and are confirmed by the Senate. They serve a term of four years. |
| Federal Reserve Board of Governors | The seven-member governing board of the Federal Reserve System. Members are appointed by the president and confirmed by the Senate for their 14-year terms. The board supervises the activities of the Fed and, as the majority of the Federal Open Market Committee (FOMC), is principally responsible for the conduct of monetary policy. |
| Federal Reserve System | The seven-member governing board of the Federal Reserve System. Members are appointed by the president and confirmed by the Senate for their 14-year terms. The board supervises the activities of the Fed and, as the majority of the Federal Open Market Committee (FOMC), is principally responsible for the conduct of monetary policy. |
| Federal Savings and Loan Insurance Corporation | A federal institution that insures deposits of federally chartered savings and loan associations. |
| Federal Trade Commission | A federal agency that enforces antitrust and consumer protection laws, including the Truth-in-Lending Act, Fair Credit Billing Act, Fair Credit Reporting Act, Equal Credit Opportunity Act, Fair Debt Collection Practices Act and Home Ownership and Equity Protection Act. |
| Fiduciary | An individual, company or association responsible for managing someone else's assets. Fiduciaries include executors of wills and estates, trustees, receivers in bankruptcy and those responsible for managing the finances of a minor. |
