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BEFORE SWIPING FOR SOMEONE READ THIS 100 TIME : (first hand story)

https://forums.dansdeals.com/index.php?topic=36812.msg2062371#msg2062371

Dan's warning to DDF:
I hope people realize that any buying group or anyone else that gets merchandise in advance of payment can go south at any time. That's even if you get a check at the time of delivery.
X-posting as I don't want anyone to say that I never put a warning here.


« Last edited by Pad18 on Yesterday at 02:53:39 PM »

Author Topic: PSA: Don't swipe recklessly for others  (Read 131567 times)

Offline zh cohen

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Re: PSA: Don't swipe recklessly for others
« Reply #1980 on: February 10, 2019, 10:38:18 PM »
One point that needs to be spoken about more is how MS and "the game" affect how people look at credit card spending. It doesn't feel like real money.

None of these people would go to a bank, take out a loan and hand over cash to a stranger, but when you do tens or and even hundreds of thousands of dollars of MS it starts to feel like fake money, because it's all numbers on the screen.

Dan deserves praise for reminding people to be careful and people should pay more attention to those warnings
« Last Edit: February 10, 2019, 10:42:21 PM by zh cohen »

Offline LoLo

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Re: PSA: Don't swipe recklessly for others
« Reply #1981 on: February 10, 2019, 10:42:00 PM »
Very true.

Offline Mo2

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Re: PSA: Don't swipe recklessly for others
« Reply #1982 on: February 10, 2019, 10:44:05 PM »
Is it bad investment for 2% a month
Thatís like 24% annually
1. points are not cash
2. if everyone did the same due diligence they would/should do before lending or investing money and then lend or invest responsibly, we wouldn't be having these discussions here.

My main point is that people simply don't realize the risks involved.
I'm a big fan of getting extra points. But I am against ppl not realizing the risks they're taking and even more against those who downplay the risks or even "guarantee" that it's risk free

Offline Dan

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Re: PSA: Don't swipe recklessly for others
« Reply #1983 on: February 10, 2019, 10:47:31 PM »
The only time it was risk free was when PFS put up collateral to match the cost of the original coin deals that they did with us.

I hope people realize that any buying group or anyone else that gets merchandise in advance of payment can go south at any time. That's even if you get a check at the time of delivery.

Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Offline Mo2

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Re: PSA: Don't swipe recklessly for others
« Reply #1984 on: February 10, 2019, 10:50:09 PM »
The only time it was risk free was when PFS put up collateral to match the cost of the original coin deals that they did with us.

I hope people realize that any buying group or anyone else that gets merchandise in advance of payment can go south at any time. That's even if you get a check at the time of delivery.
sadly your hopes aren't realized by too many

Offline aygart

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Re: PSA: Don't swipe recklessly for others
« Reply #1985 on: February 10, 2019, 11:07:43 PM »
A ddms post bashing them as ponzi perpetrators would be pure motzei Shem ra.
Almost every recent Ponzi scheme started as a legitimate business and then ended up taking capital not to fund the business but to pay back others. As soon as that happens it leaves the original business which the capital is no longer funding and becomes a Ponzi.
You have the right to remain silent. Anything you say can and will be used to start a religious discussion.

Offline YesThatsMe

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Re: PSA: Don't swipe recklessly for others
« Reply #1986 on: February 10, 2019, 11:11:31 PM »
Almost every recent Ponzi scheme started as a legitimate business and then ended up taking capital not to fund the business but to pay back others. As soon as that happens it leaves the original business which the capital is no longer funding and becomes a Ponzi.

Understand, and youíre (always) right.

But this story was not a Ponzi.

Offline aygart

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Re: PSA: Don't swipe recklessly for others
« Reply #1987 on: February 10, 2019, 11:16:51 PM »
Understand, and youíre (always) right.

But this story was not a Ponzi.
Were the later loans to capitalize a business or to repay others? If they were to repay others then what connection do they have to the business other than that it happens to be the same people. I fully understand that they did not intend to have anyone lose out etc. and they may have had good intentions blah blah. From the way you are describing it when you were there it does not seem to have been a Ponzi. Once they started taking from people who were gullible and couldn't afford it just to pay back others that is where they were nonchalant about other peoples money and lives.
You have the right to remain silent. Anything you say can and will be used to start a religious discussion.

Offline S209

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Re: PSA: Don't swipe recklessly for others
« Reply #1988 on: February 11, 2019, 01:08:02 AM »
Were the later loans to capitalize a business or to repay others? If they were to repay others then what connection do they have to the business other than that it happens to be the same people. I fully understand that they did not intend to have anyone lose out etc. and they may have had good intentions blah blah. From the way you are describing it when you were there it does not seem to have been a Ponzi. Once they started taking from people who were gullible and couldn't afford it just to pay back others that is where they were nonchalant about other peoples money and lives.
This is so obviously true I canít believe @YesThatsMe is arguing
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Offline chevron

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Re: PSA: Don't swipe recklessly for others
« Reply #1989 on: February 11, 2019, 01:12:02 AM »
The confusion is, a ponzi scheme as we know it, involves something like maddoff, pure fiction. @YesThatsMe is arguing that it was a legit business. Borrowing from A to pay B and keep business afloat is done every day in corporate america..

Offline S209

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Re: PSA: Don't swipe recklessly for others
« Reply #1990 on: February 11, 2019, 01:39:24 AM »
The confusion is, a ponzi scheme as we know it, involves something like maddoff, pure fiction. @YesThatsMe is arguing that it was a legit business. Borrowing from A to pay B and keep business afloat is done every day in corporate america..
But borrowing from A to pay B, and then B to pay C, when there are no funds actually being used for the core business, is a regular Ponzi scheme. Obviously.
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Offline Emkay

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Re: PSA: Don't swipe recklessly for others
« Reply #1991 on: February 11, 2019, 05:56:13 AM »
But borrowing from A to pay B, and then B to pay C, when there are no funds actually being used for the core business, is a regular Ponzi scheme. Obviously.
Although most times that this occurs it's not precisely like that. It's 1) borrow from A to buy merchandise, 2) use the proceeds to repay A, 3) borrow from B to buy merchandise... 3 may be before 2 at times.

Offline Chief Rabbi of New York

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Re: PSA: Don't swipe recklessly for others
« Reply #1992 on: February 11, 2019, 07:03:04 AM »
The only time it was risk free was when PFS put up collateral to match the cost of the original coin deals that they did with us.


How is this risk free ? Letís say PFS didnít pay, and then you didnít pay with the collateral that you had ?
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Offline churnbabychurn

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Re: PSA: Don't swipe recklessly for others
« Reply #1993 on: February 11, 2019, 07:28:32 AM »
How is this risk free ? Letís say PFS didnít pay, and then you didnít pay with the collateral that you had ?
Not risk free, but risk seriously mitigated by a third party with a reputation on the line holding collateral

Offline AussieMan

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Re: PSA: Don't swipe recklessly for others
« Reply #1994 on: February 11, 2019, 07:42:15 AM »

But this story was not a Ponzi.
Was not to begin with when you were there, but became one

Anyone lending to them or buying groups with no financials as mentioned above have to realize the risk of it becoming a Ponzi scheme and they will have no way of knowing it.