Saturday, October 26, 2013

Evil MLM: Get Payday Loan to Join MLM? WTF?!

Editor's note: This is a start of a new, and hopefully continuing series of what NOT to do in MLM, under the tag "Evil MLM". Basically, this is the sort of bad behavior that gave MLM a bad rap (much of it deserved).

I've heard of people spending their severance pay to join MLM. In fact, this is done quite often in Israel, where when you are discharged from the required service in the Israeli armed forces, you're given a severance pay to help you get back into civilian life, and some sleazy MLMers have gone as far as park their fancy car, glitzy bling, and pretty girls next to discharge stations to snatch up recruits as they walk out. Too bad their leader is a f***ing cult leader who pushes Herbalife. 

But here's something more disturbing, closer to home... a "leader" in Vemma telling people on Facebook, that they should not worry about not having any money to join Vemma as a poor college kid. Instead, they should go take out a payday loan (with their usurious interest rates) and use that cash to join Vemma, and immediately do a full court press, to get the money back so the check doesn't bounce.

Don't believe me? Here's proof on Facebook:

Here's a screenshot from Facebook, where this post apparently no longer exists.


Thanks to Revanchist over at YPR Pariah for the tip.

Let's see, 24% interest (120 interest for 500 principle) for 6 weeks. 52 weeks in a year...

Holy ****! That's more than 208% APR! 

What's worse is the tag that seem to be favorite of Vemma reps... rackem
Billiard
Billiard (Photo credit: Hades2k)
Who's getting racked... or should I say, whacked?

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3 comments:

  1. It seems at least Wells Fargo is now offering payday loans, though they call theirs a "direct deposit ...
    payday loans

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  2. Did you know that even though you have written a personal check for a payday loan, a lender cannot arrest you for writing a bad check (bouncing a check because of insufficient funds) if you don't have the money in your bank account to cover that check or electronic debit. See http://infoaviator.org/finance/credit/personal-loans/2014/06/08/can-i-go-to-jail-for-a-bad-check-if-i-dont-pay-back-my-payday-loan/ to learn how to give these loan sharks a taste of their own medicine!

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    Replies
    1. If you don't have any credit to speak of, I guess you have nothing to lose. But it's certainly not a recommended route. And in any case, it's not really relevant to the original topic.

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