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Do you mean that they take money without training? Or in what way are they a "scam"?
Ok. According to the reports I looked at on the Internet, this company promises that a person will make money using their system to do stock trading online. The $5000 is for the training videos that they will send, once they receive the money.
According to the report, from people who have been lured into doing business with this company, the training videos are simplistic and inferior. The company promises that a stop loss figure will be used when trades are made on their website, however, they ignore the stop loss and will not sell your stock as promised when it reaches the stop loss mark.
There is other information on the fraud report.
Thank you. The fact that a product is inferior does not make the contract itself invalid or fraudulent, however, if this is a company that continuously makes these assertions and does not live up to them, you could claim "anticipatory breach". In effect, what that means is that you have a good reason to believe that they are going to breach the contract, and as a result you breach first by not paying. If it is fraudulent, then there's no question whatsoever that you can not pay, and if they come after you with a collections action, you could win that case if you could prove fraud. That being said, like a said before, it's not necessarily fraud to provide an inferior product, or a product that is "inflated" by "sales talk".
Another thing that you should consider is their likelihood that they will even try to collect. Collections is a time-consuming process, and is very expensive should they go to court.
Most likely, they may send you a lot of letters threatening a lawsuit, and maybe even have a collection agency pursue this, however if you allege that there is fraud in the transaction, and that you will assert that as a contractual offense, most likely they would not take it to the next step and sue you on it.
Again, if you could prove that it was fraud, then that would be a defense, no question about it. But the proof is not a clear cut case. You would need to prove that they made an assertion without any intent of fulfilling their obligations or promises.
Ok. I have removed all but a small balance on my checking account. Is there anything else I need to do to protect myself?
Just gather all the information that you can regarding this company (complaints, etc...) so that you can establish that in the future.
I don't know about their intent to defraud other than the experiences of others. Apparently they target persons like myself who are senior, out of work or unable to work and really need to find a way to make some money from home.
I understand. Can you tell me if you are currently employed? Or do you only have income from retirement accounts / social security / etc...?
I am unemployed since the end of 2011. I have had numerous interviews in a field in which I am well experienced and highly qualified, but I am also 60 years old. Because my last job was in Kuwait, I was denied unemployment benefits. I am too young for Social Security. My husband is retired military. He works part-time and he goes to Barber college after work. We are barely paying the bills and this looked like a good way for me to make some money to help pay the bills.
I understand. Believe it or not, this is actually better on your part, because the reason is that an unsecured creditor, such as they would be, would not be able to garnish your retirement accounts, social security, etc.They wouldn't be able to garnish your husband's accounts. And since you don't make anything, they wouldn't be able to recover anything from you. They may threaten all sorts of things against you, but legally speaking they are completely unable to garnish those accounts, and as such makes it more likely that they will just go away, rather than go through the expense of litigation to try to obtain a judgment against you which they cannot collect on. You would be what we lawyers call "judgment proof", in that it would cost more to sue you than would be able to be collected.
So even IF there is a valid contract, it's very unlikely that they will try to enforce it.
(at least all the way to court).
Bear in mind that they may still threaten to sue, have a debt collector contact you, etc... but you can tell them that you don't have any income, no job, etc... and that this would make you bankruptcy (bankruptcy would make this debt be discharged) and most likely they will stop even trying to collect it.
Hope that clears things up a bit. If you have any other questions, please let me know. If not, and you have not yet, please rate my answer. Please note that I don't get any credit for my answer unless and until you rate it a 3, 4, 5 (good or better). Thank you, XXXXX XXXXX luck to you!
Ok. Thank you for that. I was hoping there might be a 3-day renege thing like when I sell an AVOn customer more than $50, she has the right to stop the sale.
The thing about AVON sales is that sales in the home, where you're selling to another in their home, that has a Federal right of rescission. But if this was not in your home, there would be no right of rescission.
Now if it was (as in the salesperson physically in your home) then you could invoke the 3 day right of recission.
The entire transaction too place in my home, over the telephone.
ok that clarifies that for me. Thank you.
Unfortunately that would not apply, because the salesperson wouldn't physically be present. The reason for the right of rescission is that if the salesperson is aggressive or threatening, you can still cancel a contract once at salesperson has left.
My pleasure.If you have any other questions, please let me know. If not, and you have not yet, please rate my answer. Please note that I don't get any credit for my answer unless and until you rate it a 3, 4, 5 (good or better). Thank you, XXXXX XXXXX good luck to you!
I have not more questions. I do appreciate your time, and will give you a good rating.
Thank you, XXXXX XXXXX good luck to you!
Sorry. My language is usually not that bad. I am just a little bit upset with myself here.