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Thanks! We're really trying to help people deal with tight financial times. The 4% fee is lower then credit cards, payday loans, auto title loans, etc.

tzs 11y ago
...well, it's low assuming that the person pays back on time. I'd expect that a fair number of people will use the service because they are in financial trouble, and some of those will then find 6 months later that they are still in trouble and won't be able to pay you back. It looks like those people will face a bit more than 4%: > If you do not pay in full within the 6 month period, interest (Annual Percentage Rate is 19.99%. Minimum interest charge is $2.00) will be calculated from the posting date (which is usually within a few days after the purchase date) and will be billed to your account. It will be interesting to see how this business ends up being perceived. I can see it going two ways. If most of your customers end up being people who just need a little help with a bill now and then and are able to pay in six months and so only incur the 4% rate, I think this will be perceived as an innovative and useful service. If a lot of customers turn out to be people who are in more serious difficulty and many cannot make the six month deadline and so get hit with the 19.99% annual rate, expect a firestorm of criticism accusing you of exploiting the poor. I'm curious about the legal aspects of this. In most states with usury laws, 19.9% is above the limit, although there may be exceptions for specific types of loans or for specific types of businesses. Have you done your legal homework on all this and obtained any required licenses and so on, or is this one of those "disrupt first, try to satisfy the regulators later" kinds of business?
- ad_paddock 11y ago
  Great thoughts tzs, thanks for this comment. We're hoping to perceived as being helpful. We think it's pretty transparent and we also send users monthly reminders advising them to pay at least 1/6 of their bill each month. In terms of your last question it's definitely disrupt first! However we did consult a lawyer who thinks we might be ok as PayPal Credit is licensed throughout the U.S. But we'll see!
- brbsix 11y ago
  While this site is new, the underlying basis is not. I recall using PayPal Credit via G.E. Capital nearly a decade ago. Albeit not for a bill, but for an online purchase. The terms were the same. I was in college at the time and even though I had the cash on hand, it was helpful to have some flexibility on when to repay it without incurring any interest.

tzs 11y ago

...well, it's low assuming that the person pays back on time. I'd expect that a fair number of people will use the service because they are in financial trouble, and some of those will then find 6 months later that they are still in trouble and won't be able to pay you back. It looks like those people will face a bit more than 4%: > If you do not pay in full within the 6 month period, interest (Annual Percentage Rate is 19.99%. Minimum interest charge is $2.00) will be calculated from the posting date (which is usually within a few days after the purchase date) and will be billed to your account. It will be interesting to see how this business ends up being perceived. I can see it going two ways. If most of your customers end up being people who just need a little help with a bill now and then and are able to pay in six months and so only incur the 4% rate, I think this will be perceived as an innovative and useful service. If a lot of customers turn out to be people who are in more serious difficulty and many cannot make the six month deadline and so get hit with the 19.99% annual rate, expect a firestorm of criticism accusing you of exploiting the poor. I'm curious about the legal aspects of this. In most states with usury laws, 19.9% is above the limit, although there may be exceptions for specific types of loans or for specific types of businesses. Have you done your legal homework on all this and obtained any required licenses and so on, or is this one of those "disrupt first, try to satisfy the regulators later" kinds of business?

ad_paddock 11y ago
Great thoughts tzs, thanks for this comment. We're hoping to perceived as being helpful. We think it's pretty transparent and we also send users monthly reminders advising them to pay at least 1/6 of their bill each month. In terms of your last question it's definitely disrupt first! However we did consult a lawyer who thinks we might be ok as PayPal Credit is licensed throughout the U.S. But we'll see!
brbsix 11y ago
While this site is new, the underlying basis is not. I recall using PayPal Credit via G.E. Capital nearly a decade ago. Albeit not for a bill, but for an online purchase. The terms were the same. I was in college at the time and even though I had the cash on hand, it was helpful to have some flexibility on when to repay it without incurring any interest.