National Public Radio is reporting on the mess at Canopy Financial which was sold recently out of bankruptcy to PayFlex.
While Canopy Financial was essentially a platform to manage HSA accounts, monies for some depositors was somehow misappropriated by the company.
One senior manager is under a cloud and the company is now closed.
The story indicated that some people were out the monies in their HSA account.
While some 1,000 depositors are suing for return of their monies, Colony Financial has made all 14,000 depositors whole while it seeks to recover the monies. So also did FirstThird bank.
The moral of the story is that depositors need to be careful as to where they place their monies.
More than 1,200 financial institutions ranging from JPMorganChase to Pactel Credit Union manage six-plus million such accounts with allmost all under some form of government insurance protection..
A list of banks offering HSA accounts is available at http://search.hsafinder.com.
NPR brings up the question of federal oversight requirements but fails to point out that almost all HSA accounts fall under existing regulations and are insured by government agencies just like every other bank deposits..
Herewith is the link to the NPR story and we encourage readers to read this account.