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TheVig

Blispay Suspended New Funding Email

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Unfortunately, CSRs are the last ones to know. Their goal is to keep customers paying their bills. It's in the companies interest to keep them in the dark. I don't give high odds that Blispay will resume taking charges within a few weeks.

 

Any equity infusion at this point will come at a much higher price than a month ago. They know that. Potential investors (equity injectors) know that.  If it wasn't available before the shutdown, why would they do it now at a higher price?

 

I don't believe their business model is viable in the current environment and I suspect investors will not either.

 

But who knows for sure. Could be if the fed reverses hikes things could change. But if so that's likely months from now.

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18 hours ago, hdporter said:

 

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.

 

Integrity most certainly comes into play when they have voluntarily assumed an obligation to be there for cardholders and failed.  How many cardholders were left high and dry by this surprise announcement?  CB veterans weren't, but we are simply a very tiny minority.  Their agreement with cardholders is to be there when you want to use your card.   They lied.  Even the credit unions that CV constantly biatches about aren't as lame.

 

But they would sure be first-class whiny little biatches if a cardholder unilaterally decided "Hey, I decided to take a few weeks / months off from making payments."

 

I hope Karma comes around to bite them in the arse.

 

 

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34 minutes ago, TheVig said:

Thinking seriously of pinching off this turd.

 

Me too.

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Due to the "tremendous demand", blah, blah, blah.

 

Then total silence.

 

Must be really hard to catch up with all that "demand."

 

:rolleyes:

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57 minutes ago, cashnocredit said:

Due to the "tremendous demand", blah, blah, blah.

 

Then total silence.

 

Must be really hard to catch up with all that "demand."

 

:rolleyes:

 

I see two distinct possibilities:

 

1.  Working hard to buy a sucker to invest / purchase PisPay;

2.  Post Office.  Wanted Posters.  The Bahamas.  

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On 12/4/2018 at 3:59 PM, Kat58 said:

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

 

 

I need to call them again next week or maybe February 4th since it will be 2 months :rolleyes:

 

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On 1/26/2019 at 8:36 PM, Kat58 said:

I need to call them again next week or maybe February 4th since it will be 2 months :rolleyes:

 

*Admin removes vulgarity* those *Admin removes vulgarity*

 

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1 hour ago, Kat58 said:

*Admin removes vulgarity* those *Admin removes vulgarity*

 

 

What happened????   🤣

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I just read over on the nope nope nope site that PissPay sent some redacted a replacement card.  

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23 minutes ago, PotO said:

 

What happened????   🤣

No new info, blah blah blah. CSR from 2 months ago shouldn't have told me that, blah blah blah.

 

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30 minutes ago, cashnocredit said:

Lol. I can just the Greg (CEO) signing off.

 

'Th-th-th-that's all folks!'

 

 

 

I'd bet Porky Pig could better run a credit card company. 

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Sent this message on Monday (Blispay/Facebook)...

IcAYe4r.jpg?1

Seen it on Thursday... no response

 

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27 minutes ago, Kat58 said:

Sent this message on Monday (Blispay/Facebook)...

IcAYe4r.jpg?1

Seen it on Thursday... no response

 

 

They are probably too busy in the Bahamas on vacation.  

 

Or they are afraid if they tell cardholders the truth than they will never resurrect from the dead that cardholders will cancel en masses and then there are no hopes of selling the company to some rich moron.  

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Kat, it's virtually certain it wasn't their choice to suspend issuing credit. But it was their choice to say it was to "catch up with growth." And that's pretty much just BS unless the "growth" they were referring to was bad debt growth.

 

Little doubt their underwriting bank pulled the plug. Their dilemma is how to present this publicly so that the current Blispay debtors will continue to pay their bills. Many don't understand that if a creditor goes under debts owed to them remain valid.

 

And even for those that understand, the inclination is to pay them last. If at all.

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8 hours ago, Kat58 said:

Sent this message on Monday (Blispay/Facebook)...

IcAYe4r.jpg?1

Seen it on Thursday... no response

 

Next time include more punctuation. 

 

😛 

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On 2/8/2019 at 11:14 PM, cashnocredit said:

Little doubt their underwriting bank pulled the plug. Their dilemma is how to present this publicly so that the current Blispay debtors will continue to pay their bills. Many don't understand that if a creditor goes under debts owed to them remain valid.

 

And even for those that understand, the inclination is to pay them last. If at all.

I don't recall who it was a few years ago (within the past decade), but I remember someone had gone under...the portfolio was sold to some entity that simply issued 1099C's for all of the outstanding balances.  I am guessing that they came out ahead, having bought the portfolio at a discount and then taking the tax write-down at face value of the 1099'ed amounts...

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While there's a good chance that bad debt is a factor in the Blispay loan suspension, it needn't necessarily be the case.  As a lender, they're required to keep reserves against possible loan losses.  If lending grew more quickly than anticipated, or borrowers were slower to repay than anticipated, it would be necessary to bring in more investor money to continue lending.

 

That said, the fact that they haven't sought additional investor money (or at least been successful in raising more money from investors), suggests that all isn't well -- and, indeed, loan write-offs may be excessive.

 

No news is likely "bad news".  I've assumed my account is defunct (once the outstanding balance is repaid in May).

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2 hours ago, centex said:

I don't recall who it was a few years ago (within the past decade), but I remember someone had gone under...the portfolio was sold to some entity that simply issued 1099C's for all of the outstanding balances.  I am guessing that they came out ahead, having bought the portfolio at a discount and then taking the tax write-down at face value of the 1099'ed amounts...

I won't question that it may have been a profitable transaction, but it wasn't on the strength of related tax deductions alone ...

 

I have a solid accounting/finance background.  The tax basis in any asset purchase is based upon the consideration involved (i.e. the cash paid, for a straight-up cash purchase).  "Face Value" has no bearing.  The only value-related tax deduction from the investment would be if they received less in repayment than what the portfolio was purchased at.

 

Of course, for what it's worth, the original lender would take a loss deduction for the difference between the final outstanding loan amounts and the discounted sale proceeds.

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41 minutes ago, hdporter said:

While there's a good chance that bad debt is a factor in the Blispay loan suspension, it needn't necessarily be the case.  As a lender, they're required to keep reserves against possible loan losses.  If lending grew more quickly than anticipated, or borrowers were slower to repay than anticipated, it would be necessary to bring in more investor money to continue lending.

 

That said, the fact that they haven't sought additional investor money (or at least been successful in raising more money from investors), suggests that all isn't well -- and, indeed, loan write-offs may be excessive.

 

No news is likely "bad news".  I've assumed my account is defunct (once the outstanding balance is repaid in May).

Their business model, with a 6 month float/no interest, made a bet that at the end of the 6 months people would be making payments. The float was funded by their underwriting bank and additionally collateralized by Blispays assets. The profit pitch was a healthy vig from the sales made by retailers on the 6mo plan. The problem is that the profit/loss projection flips if interest rates go up even moderately and/or even a small decrease in the numbers repaying at the end of 6 months. The former happened and the latter probably happened too as lenders generally have been increasingly mining subprime borrowers. Wouldn't surprise me if a larger percent of folks started to default after the 6 months than FICO scores would project since the 6 month, no payments is going to be particularly attractive to the financially stressed and it takes a while for that to show up in scores.

 

There's still bunches of smaller retailers and websites that haven't updated and still advertise Blispay stressing the 6 month/no payments deal.

 

They are toast. I don't think there is anyone interested in picking up any of the pieces.

Edited by cashnocredit
inadvertantly reversed latter/former

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