Q: How long can a company get to avoid been called a bank legally?

Can a company sell virtual points that people can buy and use to buy stuff from stores that agree to cash in those points for money at the end of every month from the company?

How CLOSE can a company get to avoid been called a bank legally?

1 Lawyer Answer
Paul J. Riviere
Paul J. Riviere
  • Business Law Lawyer
  • Jackson, NJ
  • Licensed in New Jersey

A: Your able to loan money within certain interest rate limits but cannot maintain money accounts or participate in issuing credit cards or anything offered by Federal Reserve. But this a very tricky area that needs lots of research as failure to follow state guidelines can lead to imprisonment. You are also limited in the names you are allowed to use under state guidelines.

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