What if the prepaid card goes bust, like Lo** ot App in May 2019? Just found this...
The Lo** ot card came in the form of a prepaid Maste* rcard. Which sounds pretty respectable to me, something I might go for!
Lo** ot 'encouraged customers to load money onto a prepaid card' which can hold £25,000 at any one time, Sounds good!
Royal Bank of Scotland even had a 25% investment in the business, but Lo**ot isn't a bank card nor covered by the RBS.
Your cash is actually stored with a German company!
Lo**ot went bust, with 212,000 customers.... wondering if they'll see their cash again. 'Because it not a bank and doesn't have a banking licence means you don't get the Financi.al Services Compensa.tion Scheme compensation that you would do on a traditional bank or building society current account.'
'
The Financial Conduct Authority (FCA) warned Lo**ot customers to withdraw their money by 26 July 2019. Wonder how many people missed that warning?
Even worse!...Lo**ot had a disclaimer on it's website that client's cash is at risk if they go tits up but it wasn't very prominent.
I guess these type of cards are as you say ok for a
'short term solution' quick in quick out like da punters