March 27, 2014


  • Sounds like a great idea, until he needs to benefit from some of the consumer protection regulations that apply to banks and CUs (and result in costs which must be offset by fees), or when the company suddenly changes it policy and the guy can’t get money out to pay rent. Also, if the company fails he could not look to FDIC or NCUA. I don’t think there is really much new or innovative about this, it is just like using “lay away” as a savings account without the intention of purchasing the product. Not exactly an advisable practice, but lots of lower income people do it.