Jump to content

TheVig

Blispay Suspended New Funding Email

Recommended Posts

Got an email, from Blispay saying they have suspended new transactions for all card holders, until they can catch up with their growth. LMAO!!!!

 

Sounds like existing card holders have taken a dump on them. Along with funding issues.

Share this post


Link to post
Share on other sites

Suspending future Blispay purchases

Due to tremendous demand, we’ve found ourselves in the position of needing to temporarily suspend lending in order to give us time to catch up with our growth. What this means is that you will not be able to use your Blispay card for new purchases effective immediately. We're working diligently to resume lending as soon as possible. If you would like more details about this update read this blog post from our CEO.

Although you can't use your account for new transactions at this time, you are still required to pay your balance. We’re pleased to let you know that your active promotions will not change; the expiration date of promotional balances will remain the same. You can access your account and pay your balance via www.blispay.com or the Blispay iOS or Android app. You will continue to receive notice of your monthly statement via email.

We hope to resume lending as soon as possible. We’re extremely sorry to all of our loyal cardholders who were looking forward to taking advantage of all Blispay has to offer during the start of this holiday shopping season.

Sincerely, 
The Blispay Team

   

Please do not reply to this email.

3717 Boston St, #380 Baltimore, MD 21224

The Blispay Visa® Card is issued by First Electronic Bank, Utah. © 2018 blispay inc.

 

Share this post


Link to post
Share on other sites

It's possible that loaning money at 0% in perpetuity was a suboptimal business plan.

Share this post


Link to post
Share on other sites

Clearly they didn't make enough off of transaction fees. Probably too many people PIF before the interest hits. Along with some that probably went delinquent. 

 

With black Friday upon us. I'm sure a bunch of poor basterds, who didn't get the notice will be embarrassed when they get up to the register at Best Buy or the Prius rim shop only to see their shyt declined. PRICELESS. 

Share this post


Link to post
Share on other sites
1 hour ago, TheVig said:

Suspending future Blispay purchases

....

 

Sincerely, 
The Blispay Team

   

 

3717 Boston St, #380 Baltimore, MD 21224 <--- UPS Store

 

 

Share this post


Link to post
Share on other sites

Assuming the card has increasingly found a home with consumers, Blispay needs to raise funds to finance purchases.  To date, it has issued $26 mil in debt securities.  It sought a new offering earlier this year to raise $30 mil more. 

 

I can't find anything that discusses this newest offering, but I'm going to assume that they had difficulty finding subscribers.

 

Not finding news of that, or of a problematic default rate.

Share this post


Link to post
Share on other sites

I don't have the card, but for a company to say all their customers can no longer use it at the moment so they can catch up on things, especially right at the start of the holiday shopping season, doesn't look good. 

I hope you have back-up cards.

Edited by Burgerwars

Share this post


Link to post
Share on other sites

My DW just pointed out another scenario, for those that didn't see the notice...……...

 

Some family traveling over Thanksgiving with a questionable vehicle that happens to break down. A long way from home, only to find out the card don't work...…….and that's all they got.

Share this post


Link to post
Share on other sites

Yes, always travel with backup cards! When I travel, I put a backup card (I also know the PIN) and backup ID (like my passport card) in the hotel safe. That way, if something happens to my wallet at least I have something. Of course, if I'm robbed on the street and then head back to the hotel only to find the safe broken into, then I'm screwed.

Share this post


Link to post
Share on other sites

closed mine a while ago. it's biz model relies on those who don't PIF in 6 months... I guess not enough myficoforum crapflakes signed up

Share this post


Link to post
Share on other sites

RIP, Blispay.

 

The only logical explanations I can find are either they approved too many deadbeats and are bleeding money, their market sucks or ... we will see the US Attorney announcing a few indictments for embezzlement.  

 

A, B or C.  Hege, know any bookies willing to set odds?  :)

Share this post


Link to post
Share on other sites
5 hours ago, hdporter said:

Assuming the card has increasingly found a home with consumers, Blispay needs to raise funds to finance purchases.  To date, it has issued $26 mil in debt securities.  It sought a new offering earlier this year to raise $30 mil more. 

 

I can't find anything that discusses this newest offering, but I'm going to assume that they had difficulty finding subscribers.

 

Not finding news of that, or of a problematic default rate.

Odds on the holders of those debt securities getting paid are not good. Consumers that are not able to use their cards are not happy campers. It will increase the fraction of card holders that decide repaying a company that effectively canceled their card is less than high priority.

Share this post


Link to post
Share on other sites
15 minutes ago, cashnocredit said:

Odds on the holders of those debt securities getting paid are not good. Consumers that are not able to use their cards are not happy campers. It will increase the fraction of card holders that decide repaying a company that effectively canceled their card is less than high priority.

 

I was thinking that, too.  I bet you are right in that defaults rise or intensify when the company is defunct.

Share this post


Link to post
Share on other sites
3 hours ago, PotO said:

 

I was thinking that, too.  I bet you are right in that defaults rise or intensify when the company is defunct.

Blispay is a highly leveraged lender in a market with rapidly increasing headwinds. Their leverage is more sensitive to interest rate changes because of the 6 month, interest free specials for over $200 purchases they have been doing. Recent interest rate increases combined with rising default rates almost certainly was eating into their income big time.

 

Also, screwing all their "partners" who were counting on the 6 month 0% deal to attract new customers is not going to go down well.

 

A quick search on the net shows many partners were just starting to push Blispay financing at checkout. Ouch.

 

Given the abrupt nature of the new charge shutdown this smells an awful lot like their underwriting bank pulled the plug. They are highly leveraged with the bank on the hook for multiples of the invested equity. And Blispay's biz model is particularly vulnerable to macro conditions. Likely the bank demanded a lot of new collateral and gave them a short deadline. The bank has the greatest exposure and banks are getting pretty nervous. Blispay couldn't raise the equity and borrowing wasn't an option.

 

Such is life.

Share this post


Link to post
Share on other sites
4 hours ago, cashnocredit said:

Blispay is a highly leveraged lender in a market with rapidly increasing headwinds. Their leverage is more sensitive to interest rate changes because of the 6 month, interest free specials for over $200 purchases they have been doing. Recent interest rate increases combined with rising default rates almost certainly was eating into their income big time.

 

Also, screwing all their "partners" who were counting on the 6 month 0% deal to attract new customers is not going to go down well.

 

A quick search on the net shows many partners were just starting to push Blispay financing at checkout. Ouch.

 

Given the abrupt nature of the new charge shutdown this smells an awful lot like their underwriting bank pulled the plug. They are highly leveraged with the bank on the hook for multiples of the invested equity. And Blispay's biz model is particularly vulnerable to macro conditions. Likely the bank demanded a lot of new collateral and gave them a short deadline. The bank has the greatest exposure and banks are getting pretty nervous. Blispay couldn't raise the equity and borrowing wasn't an option.

 

Such is life.

 

Management must be highly incompetent and staff overpaid.  

 

I doubt they will survive.

Share this post


Link to post
Share on other sites

FWIW, CSR stated earlier today that they would be back up and running in a couple of weeks. We shall see.

 

Share this post


Link to post
Share on other sites
2 hours ago, Kat58 said:

FWIW, CSR stated earlier today that they would be back up and running in a couple of weeks. We shall see.

 

I tried calling and there was no option to speak to a CSR.

 

In any event, even if they do auto-resuscitate, one would have to be a blooming idiot to put faith in them again.  Their credibility, not to mention their integrity, is shot.  

 

Can you you even begin to imagine Discover pulling a stunt like that?  Or AmEx?  Chase?  B of A?  Any card issuer even?

Share this post


Link to post
Share on other sites
16 hours ago, PotO said:

In any event, even if they do auto-resuscitate, one would have to be a blooming idiot to put faith in them again.  Their credibility, not to mention their integrity, is shot. 

 

Short of actually having burned a merchant (by failing to remit funds due on credit sales), I wouldn't impugn their integrity.  (But, yeah, their credibility as an on-going concern takes a hit.)

 

My guess is that those merchants who've elected to finance purchases through Blispay will be quite willing to continue to do so, when back in operation.  They might, however, keep Blispay on a bit of a short leash for the time being.

 

As a Blispay cardholder, I have no qualms about charging on my card when it suits me.  Yeah, maybe they're a bit "not ready for primetime".  But no one else has come to the table with a 2% rebate, 6-mo 0% finance card.

Share this post


Link to post
Share on other sites
On 12/4/2018 at 4:49 PM, PotO said:

I tried calling and there was no option to speak to a CSR.

 

In any event, even if they do auto-resuscitate, one would have to be a blooming idiot to put faith in them again.  Their credibility, not to mention their integrity, is shot.  

 

Can you you even begin to imagine Discover pulling a stunt like that?  Or AmEx?  Chase?  B of A?  Any card issuer even?

Truly subprime. 

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Today's Birthdays

    No users celebrating today.
  • Member Statistics

    • Total Members
      177,114
    • Most Online
      1,528

    Newest Member
    nikol666
    Joined

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×
×
  • Create New...

Important Information

Guidelines