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#15565 - 04/16/02 10:38 PM Brokers offering Deposit "Insurance"?
Princess Romeo Offline

Power Poster
Princess Romeo
Joined: Jun 2001
Posts: 8,272
Where the heart is
I received a message from one of our Customer Service Managers. A customer told her that a well known brokerage firm is offering insurance on deposits up to $500,000 for a cost of $150/year.

Has anyone heard of this? I know this has to be some type of "private" or self-insurance, but of course the customer only hears "Insured up to $500,00!!!" and wants to know why WE can't do that!!!!

I told the CSM that when she calls the customer back, she should tell the customer to ask a lot of questions as to who is providing the insurance, etc.

At any rate, I went on this companies website, and they sure do seem to offer a whole lot more than banks can. Anyone out there have experience in losing customers to these brokers?
Regulations are a poor substitute for ethics.
Just sayin'

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General Discussion
#15566 - 04/17/02 03:21 AM Re: Brokers offering Deposit "Insurance"?
JMB Offline
Joined: Mar 2002
Posts: 59
Buying brokered CD's on the internet was a big topic at a former employer. When I looked at the "disclosures" that they were providing, we asked them a lot of questions which they never bothered to make much of an attempt to answer. We walked from the deal - it was way too scary. You might want to pose as a potential customer yourself to see how they handle things.

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