A friend sent me an email with a link to Worldwide Loan Club. She thinks I should sign up because the price of gas is going up, food is going up and so on. I look at this as a fancy Ponzi scheme, but I Googled it and didn't find anything that disputes it. Everything I saw was people trying to get other people to sign up for it.
I know my friend would only recommend this if she believed it would work - she wouldn't try to make me get involved in something she thought was shady. But I don't trust it.
Has anyone heard of this? Is there any reliable documentation about its legitimacy? Thanks for any responses.
Posted by Dagonee (Member # 5818) on :
quote:I look at this as a fancy Ponzi scheme
You look at it correctly.
Posted by Jhai (Member # 5633) on :
Ponzi scheme. Don't buy.
Posted by Kwea (Member # 2199) on :
I found 3 articles on it being a scam....type in world wide loan scam and see what comes up.
Also, if you have any questions, check the BBB in your area.
Your friend may not realize it is a scam.
Posted by Dagonee (Member # 5818) on :
From the FAQ page:
quote:If one of my referrals quits or becomes temporarily suspended, do I have to replace them? A. Yes. You must have at least two paid referrals for each business center for your disbursements to start. These referrals must then become qualified within 60 days. If one of your two qualifying referrals drops out of the program and receives a refund, or becomes suspended after 60 days because of inactivity, and you have no other paid members in that business center to maintain qualification, the automated system will no longer recognize you as a qualified member. You can simply replace this person with a new paid member to remain qualified.
If you did this, each of your referrals would have 60 days to find two referrals. Failure to keep two referrals means suspension. So within 1 year, you would have to have 126 referrals below you (2+4+8+16+32+64). Any one of them dropping out and not being replaced would result in your being suspended.
Within two years that number would be 8190.
In 5.3 years you'd need 8.6 billion.
One of them dropping out means you repay all the loans.
[ August 18, 2008, 02:05 PM: Message edited by: Dagonee ]
Posted by Dagonee (Member # 5818) on :
Also:
quote:It is our aim to grow at a rate of just 5% per month, so as to establish a good record of profit and loss statements. These statements will be utilized by prospective investors to see The Worldwide Loan Club's potential as an investment opportunity. The Worldwide Loan Club goes through the regulatory systems to be able to sell bonds to the bond market at a higher ROI (return on investment) than is currently available by other major investment houses.
They HAVE to grow by at least 100% every two months, by the very definition of the program.
Posted by CaySedai (Member # 6459) on :
Thanks for the responses. I'm going to email my friend and warn her.
I try not to get all excited over things - I check snopes.com when I get emails that urge me to forward them, and then reply to the sender with that information. This same friend has sent me an email about the evils of aspartame, and encouraged me to get something on my car to make it run on hydrogen as well as gas.
It occurs to me, based on Dagonee's reply, that this resembles a balloon mortgage in that at some time in the future, all the money can be due at the same time.
Posted by fugu13 (Member # 2859) on :
Yeah. Think about it this way: if everyone is receiving more money than they pay in, where is that money coming from?
Posted by CaySedai (Member # 6459) on :
fugu13: exactly.
Posted by King of Men (Member # 6684) on :
It's an interesting and possibly clever variation on a Ponzi scheme. The guys at the top make out in two ways: First, there's the application fees. Second, the punters get loans, not actual payments, and the way you're supposed to get rich is that you get a new loan every month, larger than the previous one. So when the scheme inevitably collapses, a bunch of punters are still going to be stuck with the last loan, which in principle might be enforceable. I doubt a court would enforce it, since it's obviously fraudulent, but the punters might not know that. And of course courts cost money, and whatnot. As fraudulent schemes go, it's more than usually despicable and clever.
Posted by Dagonee (Member # 5818) on :
CaySedai, your friend might not knowingly involve you in a shady business, but she did knowingly try to involve you in a get rich quick scheme.
She just needs to realize that all* get rich quick schemes = shady businesses.
*every single one I've taken the time to give even a cursory evaluation.
Posted by CaySedai (Member # 6459) on :
I've emailed her back. I also have the crowning touch - we're both LDS and the prophets have been warning church members for years to avoid unnecessary debt. I'd say this qualifies.
Posted by CaySedai (Member # 6459) on :
I think she's offended. She emailed me back and here's what she said:
quote:sorry to say that you are wrong on this. On month24 you have paid for first loan then each month after that you pay off another loan. THat is what a self liquidating loan is. And the second link I sent you take cares of you having to worry about those under you qualifying. But it is your call.
I contacted the Iowa Attorney General. Maybe they can investigate this and find out. Maybe she'll listen to an official voice. Posted by Dagonee (Member # 5818) on :
quote:And the second link I sent you take cares of you having to worry about those under you qualifying.
Could you post this second link? I'm very curious.
Posted by scholarette (Member # 11540) on :
I think that the first presidency has also issued a statement about not doing get rich quick schemes, though it was a while ago (like years).
Posted by CaySedai (Member # 6459) on :
The second link is supposed to be a group that helps you get the people in your downline. Link Posted by CaySedai (Member # 6459) on :
I should point out that was a specific link directed to me, in case I wanted to join and need help. It looks like a forum page (at a quick glance), and might have referral info in the link.
scholarette: I'm torn about this. I've considered mentioning this to my bishop (we're in the same ward) or to my friend's brother, who is a businessman. She's older than me, you would think she would be more skeptical.
Posted by ketchupqueen (Member # 6877) on :
quote:Originally posted by scholarette: I think that the first presidency has also issued a statement about not doing get rich quick schemes, though it was a while ago (like years).
I seem to remember hearing something about it in General Conference a few years ago... It was in passing but I think it was there. I'll go look.
Posted by ketchupqueen (Member # 6877) on :
And here's the talk referenced in that article, a good one that unequivocally states to avoid unnecessary debt: Earthly Debt, Heavenly Debt Posted by CaySedai (Member # 6459) on :
I absolutely was never going to sign up for this, my main concern now is my friend.
Posted by Dagonee (Member # 5818) on :
quote:Originally posted by CaySedai:
The second link is supposed to be a group that helps you get the people in your downline. Link
quote:sorry to say that you are wrong on this. On month24 you have paid for first loan then each month after that you pay off another loan. THat is what a self liquidating loan is. And the second link I sent you take cares of you having to worry about those under you qualifying. But it is your call.
To get to month 24, she's going to have to have over 8000 people under her. The numbers simply don't work, no matter how much help that forum gives her in recruiting.
At 36 months, she owes $55,000, due immediately if one of 524,287 people quits and can't be replaced.
If all this doesn't convince her, I'm not sure what will.
Posted by King of Men (Member # 6684) on :
Sigh. And this, gentlemen, is why it is absolutely imperative that our children learn about exponential growth in school.
Posted by ketchupqueen (Member # 6877) on :
quote:Originally posted by CaySedai: I absolutely was never going to sign up for this, my main concern now is my friend.
I got that. Posted by steven (Member # 8099) on :
"Sigh. And this, gentlemen, is why it is absolutely imperative that our children learn about exponential growth in school."
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