New Upgrade - Loan Shark -

**Zab** · 09-01-2011, 10:12 PM

What is this?
Many people were using the Marketplace to loan points to users. It wasn't the intention of the marketplace, but that is what it has turned into. So, I am creating a new upgrade that will allow you to loan points to users where you can set the terms and interest to charge.

Why not just keep using the Marketplace?
Person A would loan Person B let's say 2000 points. When person B defaulted on his loan, Person A would dispute it. I would then award the points to Person A, but that sent Person B -2000 points and he would never come back to PokerOwned again.

Basically, I was insuring the loans ALL the time. Again, that's not the intention of the marketplace.

What do you mean I can set the Interest Rate and Terms?
Interest, like any other loan, is an extra bonus you get for giving the loan. An example might be, you loan someone 100 points and you want 10 points of interest. The total payback amount would be 110 points.

The Term (Or length) would be, the person who is GIVING the points gives a set amount of days the person GETTING the loan has to make good, or they default.

What do you mean Default? What happens?
If you default on a loan (Do not pay it back), you cannot ask for anymore loans until you pay back your loan that you defaulted on.

ADDITIONALLY, there is a 10% penalty for defaulting on a loan. If you borrowed 100 points and the interest was 10 points. You would owe 100+10+10% = 121 total now.

Can you tell me how it works exactly?

Person who WANTS a loan posts how many points they want a loan for

Anyone can see these requests, at that point, anyone who is WILLING to loan submits their offer (How Much interest they want and how many days). At that time, points are deducted from the person offering the loan (To make sure you have enough points).

The user requesting the loan can see who is offering the loan and pick the best one. Anyone who ISN'T picked to give the loan will at that point have their points refunded.

Additionally, you can cancel your loan offer at anytime BEFORE the person requesting the loan picks you.

What kind of safe guards do you have in place? What if I never get paid?
- We will have a rating system much like the marketplace (I am trying to combine the 2 feedback ratings).
- Max Request of 4000 points
- You can only have 1 outstanding loan at a time. This is to avoid taking out NEW loans to pay OLD loans
- I plan on an upgrade LATER "Debt Collector" where if someone defaults, you can click a button and take any of the users current points up to what you are owed.
-Loans expire after 48 hours with no offers. If there is an offer on it, it is up to you to cancel it (Get your points back) if the user never accepts.

What if the person doesn't pay me, what recourse do I have?

Debt Collector-

Easily one of my favorite upgrades.

If someone goes into default that you loaned points to, you can click a link called "Debt Collector"

From there, you can see when the user last logged in, how many points they have, how many they owe you etc.

But the BEST part. You can take all their points to eat away at the debt they owe you!

[U]
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How many points am I eligible to apply for?

How many days \ months you have been a member:

1-30 days = 100 points cap
31-60 days = 250 points cap
61-120 days = 500 points cap
121-180 days = 1000 points cap
181 days+ = 4000 points cap

*** You cannot ask for more points on a loan than you have EARNED lifetime. Example: If you are eligible for a 2000 point loan, but you have only earned 715 points, you can only ask for a 715 point loan ***