Interesting idea but unnecessarily complicated. The escrow account gets rid of the advantage of the upfront payment, ie the use of the cash by the training provider.
What an escrow account will do is to give the FTO peace of mind knowing there is a commitment from the student and they can model their future expenditure knowing, barring things going horribly wrong, that student will spend his/her money with them.
Personally I think its immoral to take advance payments like this. If a builder did this they would be chased all over the place on some consumer programme.
I don't know a single builder who
doesn't fund their closing projects with cash injections from new signings.
I think it is time that one of these consumer protection shows exposed the commercial flight training racket that was Cabair just to better inform the public.
I agree wholeheartedly.
There seems to be a distinctly nasty reaction to the OP; I, for one, can only think 'there but for the grace of God...'. Can you honestly say that you haven't laid, say, £1500, in your 'account' up front when buying a car, for example? If you haven't, you are a canny super genius and flying has robbed the banking sector of the next George Soros...