Consumer Protection
How your interests are protected
Savings clubs are not securities, not investments, and not traditional loans. They are cooperative purchasing arrangements with multiple layers of consumer protection built in.
Why savings clubs are not securities
Under the Howey Test (the legal standard for determining whether something is a security), a savings club fails to meet the criteria because members do not invest with an expectation of profit from the efforts of others. Members contribute to acquire a specific asset.
Security / Investment
Generate returns for investors through capital appreciation or dividends
Savings Club
Acquire a specific, tangible asset (vehicle, home, equipment) through cooperative savings
Security / Investment
A financial instrument (stock, bond, fund share) with no guaranteed return
Savings Club
A purchasing voucher for a real asset you choose and own
Security / Investment
Yes. investors expect to profit from the efforts of others
Savings Club
No. members expect to acquire an asset, not earn a return
Security / Investment
Invested in markets, businesses, or financial instruments
Savings Club
Held in FDIC-insured trust and used exclusively to purchase member assets
Security / Investment
You can lose your entire investment
Savings Club
Your contributions are held in an irrevocable trust. Protected even if the company fails.
Security / Investment
SEC (Securities and Exchange Commission)
Savings Club
CFPB, FTC, and applicable federal consumer protection laws
Security / Investment
Meets all four prongs: investment of money, common enterprise, expectation of profits, from efforts of others
Savings Club
Fails the Howey Test: no expectation of profit, no reliance on efforts of others for returns
Eight layers of member protection
Your funds are held in trust by multiple independent safeguards. not just one.
Irrevocable Trust Structure
Member contributions are held in an irrevocable trust managed by an independent trustee (Jackson Hole Trust Company). Funds are held at US Bank (FDIC insured). Even if Savings.Club ceases operations, member funds are protected.
Independent Trustee
Jackson Hole Trust Company serves as the independent trustee, ensuring that trust assets are managed solely in the interest of members. The trustee operates independently of Savings.Club management.
Member Governing Board
Each savings club has a Member Governing Board that audits compliance, reviews financial reports, and ensures the trust operates according to its charter. Members have visibility into club operations.
FDIC Insurance
Member funds held at US Bank are protected by FDIC insurance up to $250,000 per depositor. the same federal protection that covers any bank deposit.
Fidelity Bonds & Insurance
Savings.Club maintains fidelity bonds and insurance coverage to protect member funds against fraud, theft, and mismanagement.
Full Transparency
Members can monitor their club's financial status, contribution history, Savings Score, ranking, and projected award timeline through their member dashboard. No black boxes.
7-Day Money-Back Guarantee
New members can cancel within 7 days of enrollment for a full refund. No questions asked.
Hardship Provisions
Members facing financial hardship can freeze contributions, switch to half-pay, or transfer their membership. without penalties or credit damage.
Have questions about our consumer protection practices?