Michael K
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A series of short-term zero interest loans among friends?
(I'd love to be #1, and hate to be #10)
I hope that helps.
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indie
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Pyramid |
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JohnECash
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Sounds like a pyramid scheme to me. This is illegal in the US and in many other countries. |
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Serena
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It's called a money chain or a pyramid scheme. They are illegal for a reason. All of them are a scam.
http://netforbeginners.about.com/od/scamsandidentitytheft/ss/top10inetscams_9.htm
http://ask.metafilter.com/28018/Moneychain-letters-are-illegal-but-why |
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B
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Yeah, stupid. |
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tweety gurl
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yeah i think its called a "pyramid" not a good thing though ive done it and regreted it later b/c some times i didnt have the money to give when it was my turn or just hated the fact that i had to give it knowing i had other things to pay for |
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?
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This sounds like a reverse pyramid scheme. In a regular pyramid scheme some people actually make money (the people at the top) but in this one, it seems like everyone gives $250...and then they give it to someone else.
I don't really get why anyone would do that. |
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man behind blue eye's
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that would be a 2500 dollar interest free loan,you would be repaying the same amount except 250 dollars..you be paying it back every week ? i wouldnt do it..nothing to gain except a high loan with 1000 dollar a month payback..but is called a pyramid.. |
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Inquisitive
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In India it is called a CHIT (not cheat) FUND. All the people pool in a monthly amount, pick up a chit from amongst the names of the contributor and the name picked gets the whole amt. This guy is then eliminated from the next draw and so on till each contributor gets to collect the total monthly amt. The logic of such activities is one regularly saves amt, but instead of depositing in a bank, a pooled amt goes as one time to one person each month. The luckier one gets it first and the not so lucky the last. Its a no profit no loss game (baring gains/ losses on account of interest) |
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likurim
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Yes, it's called a "Ponzi Scheme" (or scam), after Charles Ponzi. Also known as a pyramid scheme, and it's illegal because all such schemes are fraudulent in nature. |
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jjohnson94107
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pyramid scheme or pazi scheme or i cant think of what else they call it but its illegal & if you're the last person or someone breaks the chain you end up getting screwed. Its thought of as a way to save money or borrow $ immediately without paying interest & actually making $. DONT DO IT, peoples court always has 3 litigants a month who come & talk about how that got screwed up |
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♪_♫L0VE LiKE WiNTER*♪
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umm.. not that i kno of..?
idk =) |
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Snowflake
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chain letter? |
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Me
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no, but it sounds cool!!
:] |
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Seek
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sounds too communist |
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Kendra F
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Gambling?
i dont know
thats a dumb idea either way |
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