For those that may be interested. We have lowered the minimum to participate in the CreditWorks' program to $250. A $250.00 membership will receive 11 installments of $25.00. This lower membership will be available for a limited time only. www.creditsense.com
So we pay our money, and then get repaid over time with interest. In order to do that, you have to earn some sort of return on the money we give you. So my question is this: what do you do with the money? Is it just a personal loan to you, used for general purposes as you see fit? Or do you invest it in real estate, or stocks, or commodity futures? How do you earn 19% on the money yourself, so you can pay us a 19% return? BTW, I'm exercising my credit.
<So we pay our money, and then get repaid over time with interest. In order to do that, you have to earn some sort of return on the money we give you. > Yes, we do have to and we do. <So my question is this: what do you do with the money?> We invest it. < Is it just a personal loan to you?> No, it is a loan to CreditWorks, LLC. <used for general purposes as you see fit? > Yes, pretty much so. <Or do you invest it in real estate, or stocks, or commodity futures?> We invest in public listed companies only. < How do you earn 19% on the money yourself, so you can pay us a 19% return? > By trading these stocks often we tend to maximize our protift. BTW, I'm exercising my credit. GREAT! www.creditsense.com
On your web site, you claim this is not a security. Reading the definition of a security in both the Federal law and most state laws, your program would most definately be included in the definition. On what do you base your claim that it is not a security? Do you have a legal opinion from a securities attorney on that issue? What does the investor get - a note, evidence of indebtedness, stock, bond, or what? You said on your web site that this is not available in Pennsylvania. Why not? Has that state ever taken any civil, administrative or criminal action against you? If so, what was the result? Are you any relation to Chuck Ponzi?
<On your web site, you claim this is not a security.> It is a loan. <Reading the definition of a security in both the Federal law and most state laws, your program would most definately be included in the definition.> It is a loan, the lender does not participate in the profit or loss of the company. < On what do you base your claim that it is not a security?> The lender is not an owner of any part of the company. <Do you have a legal opinion from a securities attorney on that issue?> No. < What does the investor get - a note, evidence of indebtedness, stock, bond, or what? > The lender gets a promissory note. <You said on your web site that this is not available in Pennsylvania. > They gave us a cease and desist order. <Why not? > We decided it was not worth going to court to fight the order. <Has that state ever taken any civil, administrative or criminal action against you?> A cease and desist order. < If so, what was the result?> We decided not fight it the order. <Are you any relation to Chuck Ponzi?> No, I do not have any relation to Mr. Ponzi or any other pyramid schemer. All I can say, we have been paying over 19% APR since 1996. www.creditsense.com
Here is the link to the PA order. http://sites.state.pa.us/PA_Exec/Securities/actions/crdtwks.html www.creditsense.com
A promssory note is a security in this context and is defined so in both federal and state securities law. When it is given to evidence an investment it is a security. If it is given to evidence a loan, like when you borrow money from a bank, it would not be a security. Obviously Pennsylvania agreed with me. I know this is off topic, but when you use this board to solicit investors, you need to give full disclosure. It does not matter how long you have been paying interest. I think it is obvious what my concerns are. I would prefer that these types of solicitions not be allowed on this board.
<A promssory note is a security in this context and is defined so in both federal and state securities law. When it is given to evidence an investment it is a security. If it is given to evidence a loan, like when you borrow money from a bank, it would not be a security. Obviously Pennsylvania agreed with me.> Obviously, you are entitled to your opinion. We feel that if you do not participate in the profits or losses of the company you are not getting a security. We are not giving the lender a security, bond or ownership of the company.. <I know this is off topic, but when you use this board to solicit investors, you need to give full disclosure.> I have given full disclosure since day 1. <It does not matter how long you have been paying interest. I think it is obvious what my concerns are. I would prefer that these types of solicitions not be allowed on this board.> It is not your board, unless you are the PBM. I have been posting on this board since late '96. On many occasions, we have had to defend ourselves from posters such as you. If the PBM agrees with you and asks us to not post anymore, we will stop. I have no interest in fighting PA, you or anybody that feels the way you do. www.creditsense.com
