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What is a deposit?

by jaui @, Zihuatanejo, Saturday, August 22, 2020, 18:53 (59 days ago) @ hromero
edited by jaui, Saturday, August 22, 2020, 23:28

8/22/2020

Re: Security deposit post.
@ any Board User.

As we have in the States, the FDIC (Federal Deposit Insurance Corporation) insures bank deposits up to a certain amount, a wise entrepreneur or an existing financial company may see an opportunity here.

Something to the effect of an S.D.I.C. or Security Deposit Insurance Corporation could be created to protect oneself against problems of this nature.
For example for a 1.5% fee on the amount, insurance could be obtained for your deposit, not only in Hotel & Travel Reservations, but in many other circumstances such as property, car, and other rentals, in which a "Security" Deposit is required, as well.
For example, for a $100.00 deposit, a fee of $1.50 would be paid.

Just an idea, who knows whether or not there really is a need for such a service?
Most business have their policies and probably honor them to the letter.

Nevertheless, as there are millions of dollars given at any given moment as Security Deposits for many different things, there could be opportunity in a "S.D.I.C."

My previous landlord here in Z used my Security Deposit as a "loan".
Although he did make good on my refund, he took an extra 6 weeks to do so.
It wasn't a big deal as I wasn't desperate for the refund, no problem in this case.

That said, in the case of renting homes, it usually is vital to get one's alleged "Security" Deposit refunded PROMPTLY as stipulated in the rental contract, because it will be required in the place a person moves to. It frequently is difficult for people to come up with two months rent to move in to a new rental, & to put "icing on the cake", an additional "Security Deposit" may also be tacked on, besides the 1st & last month's rent.

If people or businesses need "loans", I.M.O. they should obtain those financial resources from a source who provides THAT service, and not from someone's Security Deposit. They're 2 different "breeds of cats", and should not be confused or intermingled.
IF I had my way, my preference would be that a Deposit should be just that, and left as such until the use of it comes into play.
Surely, your point of view will be to the contrary.


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