We have that scam here. It’s called “Rent To Own”.
My niece lives in London. When she went to school there years ago she rented a house with a bunch of other kids. The heat (electric?) was paid for ahead of time. They went to the electric company across town, put $400 on some sort of card, and then put the card in the meter at their house. (Goofy)
I don’t recall the actual numbers, but the $400 lasted them 11 days or something stupid - then the heat turned off! Then back across town (buses, subways, etc.) to add more mony to the card.
It sounds REALLY expensive over there.
It’s expensive but not really a scam when you consider that you’re extending credit to people who don’t have a few hundred dollars cash and don’t have a credit card. I’m pretty sure the default rate is astronomical.