facebooktwitterRSS
- Advertisement -
  • Most Commentedmost commented up
  • Most Emailedmost emailed up
  • Popularmost popular up
- Advertisement -
 

« News Home

Ice cream bank owner: Regulators backing off



Published: Sat, March 30, 2013 @ 12:00 a.m.

Associated Press

PITTSBURGH

The owner of a western Pennsylvania ice cream parlor that also accepted money deposits but paid customers “interest” in ice cream shop gift cards said state regulators are backing off now that he’s changed the name of his banking business and made other alterations.

The Pennsylvania Department of Banking in September wanted Ethan Clay to shut down the community bank he’s set up at his Oh Yeah ice cream and coffee shop, and in November sent a letter warning he faced $10,000 fines for “multiple violations.”

Instead, Clay has changed the name of the bank to Whalebone Intergalactic Cafe Banco — removing the word “bank” from the original name — and added a disclaimer that the business “is not a bank or member FDIC.” The FDIC is the Federal Deposit Insurance Corp., a government-created agency that insures deposits at licensed banks.

Clay previously advertised that he would take deposits and pay interest in gift cards to his shop.

Now he advertises “never-ending gift cards.” Customers give him a certain amount of money for the cards, for which they earn additional purchasing power at a rate of about 5 percent, Clay explained to The Associated Press on Friday.


Comments

Use the comment form below to begin a discussion about this content.


News
Opinion
Entertainment
Sports
Marketplace
Classifieds
Records
Discussions
Community
Help
Forms
Neighbors

HomeTerms of UsePrivacy StatementAdvertiseStaff DirectoryHelp
© 2014 Vindy.com. All rights reserved. A service of The Vindicator.
107 Vindicator Square. Youngstown, OH 44503

Phone Main: 330.747.1471 • Interactive Advertising: 330.740.2955 • Classified Advertising: 330.746.6565
Sponsored Links: Vindy Wheels | Vindy Jobs | Vindy Homes