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Deposit Brokers
Deposit brokers
sell financial instruments such as guaranteed investment
certificates, term deposits, government bonds and certificates of
deposit. When dealing with a deposit broker, all consumers,
including seniors, should ask a lot of questions before they give
away their money.
The following are
good questions to ask:
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Is this investment FDIC-insured?
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Does it require another account
relationship?
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Is the interest rate subject to
change?
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Is your company the issuer of
this deposit? If not, what guarantees do I have that I will
get my money back if you or the issuing bank goes belly-up?
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Am I allowed to withdraw from it
early if necessary? If not, what are the penalties for early
withdrawal?
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Are you
licensed in this state? If so, please provide evidence of
the license and the name of the agency that issued the
license.
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How long
have you been in business? Are you insured and bonded?
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Has your
company ever been placed under disciplinary action by any
state or federal regulator?
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Have you
ever had a license suspended or revoked in Nevada or any
other state?
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Do you have
an audited financial statement that you provide to the
public?
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Can you
provide references of clients that currently use your
services?
Also…
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Be alert to fraud by double-checking the
existence of a deposit issuer at
www.fdic.gov. If you're dealing with a broker, investigate
it at
www.sec.gov and with your state securities department.
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Obtain a copy of
the exact title of your account. If you're dealing with a
deposit broker, look for wordage that indicates the brokerage
"as Custodian for Customers." This ensures your portion of the
CD qualifies for up to $100,000 in FDIC coverage.
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Find out how
often you'll be paid interest, and how. Might it be by check or
by an electronic funds transfer?
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Examine
paperwork to fully understand how your investment works
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Consumers should contact the
State of Nevada Consumer Affairs Division, the
State of Nevada Financial Institutions Division, the
Better Business Bureau of Southern Nevada, or the
Attorney General’s Office, to verify licensing and to determine
if there are any outstanding complaints on file.
Source:
Nevada Financial Institutions
Division and
http://www.marketwatch.com/news/story/dont-get-duped-enticing-ads/story.aspx?guid=%7B72F4BAC0-1E70-4BAB-94DB-2CFC103E9AAB%7D
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