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Jackpot! How You Can Win the Lottery by Exercising Your Savings Account
| Content Provider | Semantic Scholar |
|---|---|
| Author | Vitello, Cody |
| Copyright Year | 2011 |
| Abstract | = 1120382. '0 Kearney et al., supra note 2, at 3. " Tufano & Schneider, supra note 9. Loyola Consumer Law Review lottery, are actually quite old and have developed different structural permutations during their lengthy histories. PLS accounts were first engineered in 1694 by the British Government when it sought to raise El million by offering an interest-paying bond that came with a raffle ticket for a grand prize.12 Simply put, PLS and LLS accounts are savings products that have "no risk of principal loss and either forfeit or accept reduced interest payments in exchange for the chance to win one or several large prizes allocated randomly."" Consequently, a consumer who would normally accrue relatively small amounts of interest on his or her savings account would be entered into a lottery for a chance to win a much larger prize that is usually aggregated from the siphoned interest that is traditionally paid on a comparable account. 14 PLS accounts offer the guarantee of maintaining the principal investment, the liquidity of a traditional savings account, and the potential to win large sums of money or other prizes." Often, the chances of winning any of the prizes offered by PLS accounts are directly related to how much money is deposited or invested in the account.16 For example, a consumer may get one raffle "ticket" for every $25 deposited into his or her account up to a predefined maximum a necessary ceiling to prevent overly favoring wealthier investors. Interest payments on these accounts may exist below the normal market rate or even fall to zero." Prizes are typically offered weekly, monthly, quarterly, and/or yearly (with the biggest prizes offered less often)." With the foregoing structure in mind, it has been determined that, because individuals grossly overweight the extremely low probability of winning prizes, grand prizes should be extremely asymmetrical.'" Therefore, in order to attract the most depositors, governments, banks, and credit unions should offer very few enormous "grand" prizes even if it means that the probability of winning drastically shrinks.2 0 Conversely, these |
| Starting Page | 434 |
| Ending Page | 434 |
| Page Count | 1 |
| File Format | PDF HTM / HTML |
| Volume Number | 23 |
| Alternate Webpage(s) | https://lawecommons.luc.edu/cgi/viewcontent.cgi?article=1039&context=lclr&httpsredir=1&referer= |
| Alternate Webpage(s) | http://luc.edu/media/lucedu/law/students/publications/clr/pdfs/vitello_cn_jackpot.pdf |
| Alternate Webpage(s) | http://lawecommons.luc.edu/cgi/viewcontent.cgi?article=1039&context=lclr |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
