Auction Management: Who’s Holding Your Money?
June 6th, 2005 by Laurie BarakSource: PC World
When should you consider using an escrow service? If you’re the Buyer, you might want to employ one if the Seller can’t accept a credit card or if the value of the purchase is more than you are willing to risk losing. If you are the Seller, you might deal with a service if you want some legal recourse in case the deal goes sour after you’ve shipped the goods.
This is an absolutely great article by PC World contributing author Andrew Brandt.
The California legislature amended the state’s escrow laws. The new law makes it illegal to operate as an unlicensed escrow agent.
If any party in an escrow transaction - the Buyer, the Seller, or the escrow service - is based in California, the service needs a license. The benefit to consumers is clear: If a licensed business commits fraud, the California agency that oversees escrow companies can seize control of the business before more money is stolen. But they can do little about an unlicensed operation.
Currently there are two escrow companies fully licensed in the state of California. These are IEscrow and Escrow.com.
Let’s hope soon other states get on board with licensing escrow companies.
To read Andrew Brandt’s complete PC World article, click here.
