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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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