Bitcoin Forum

If you pay off a BTCJam loan early, do you get a break in interest?

This is an important question, since scammers use the term "refinance" to justify taking out additional loans before the current loans are paid off.

If you don't get a break in the interest, you can't really refinance, can you?  

I really need to hear from someone who has paid off a loan early on BTCJam.

I did some early payments. If I authorize a payment ahead of time, it's still the same amount as if I authorize the payment on the due date.

Of course, people using the term "refinance" as you described don't need to be scammers in general. Most people don't have BTCjam loans as their sole income but not everyone can immediately convert their non-BTCjam income to BTC to pay back loans when needed.
They can also just be incompetent borrowers who don't intend to scam but in the end still don't pay back, in which case the arbitration process would be started by BTCjam and net-Arb and you get an arbitration award. Arbitration awards will be accepted by most courts and you can get a court ruling in an accellerated process per mail, which will of course depend on the legal environment / judicial system of borrower's and lender's country.
I heard that some people have negative credit card balance and transfer the balance from the old credit card to a newly registered credit card repeatedly without bringing the balance nearer to zero, but still they are not prosecuted for credit card fraud or ponzi.
There's also the possibility that the borrower has invested too much into other loans that are not yet funded, so that the payments of his own loans are not all covered by his balance and he has no BTC off-site. I just recently noticed that I can't cancel investments into loans that are not yet funded, but I have to wait until funding failed or until funding succeeded and payment is made back. You can sum this up as incompetency too.
Some borrowers also have multiple loans at different terms and different interest rates to offer something for different types of investors, which might be seen as suspicious by some people.

In any case, you are right to pay attention to signs like you described, I wouldn't invest in such loans either or if I invest then after doing some research. If I don't invest, if no harm is done or if I have nothing more but a suspicion, I wouldn't feel appointed to give any trust ratings as I don't aspire to play the forum's enforcer for the protection of investors, but that's just me.

I must add that my own loans were not tied to BTCUSD exchange rate. In a scenario like drewster's loans that are tied to Bitstamps BTCUSD exchange rate, the payments would vary I suppose.
See here https://btcjam.com/faq/loan_types
If I understand this correctly, if you would borrow 2000$ in BTC linked to MtGoxUSD or BitstampUSD, you would still need to pay back 2000$ in BTC. If the BTCUSD exchange rate drops, the amount of BTC needed to pay back the loan would rise. If on the other hand USDBTC drops, the amount of BTC needed to pay back the loan would drop too. Please correct me if I'm wrong.

I would be interested in the email that you got in answer to your email to drewster's employer https://bitcointalk.org/index.php?topic=418883.msg4552011#msg4552011

Thank you for your detailed answer.

The email response I got from Drew's "boss" was simply a blow off.


If/when Drew defaults on these btcjam loans, I am going to contact the Minnesota Department of Commerce, since they are licensed there as a "Residential Mortgage Originator"

In any case, Drew already has three loans on btcjam and he is asking for a fourth.  I'm asking everyone to not invest until he has paid off those previous loans.

Thank you for the information. I see the email as a positive reference for Drew.
I'm asking people to do what they want and to be careful with every investment in general.

Well, he now has THREE active loans totalling 7.5btc and TWO "Funding in progress" loans for 5BTC.  A total scam of $12,500.

BTCJam keeps deleting my comments warning other users.

I received an email from BTCJam today:


From now on I will post only facts and not my opinions.

Example:  "WARNING! User currently has FOUR active loans totalling 9.5BTC and has another open loan request for 3btc"
https://btcjam.com/users/9705

LOL, You mad bro? :p

You put "Male" in your profile, but you tell users you are female.   ::)

You confused "bro"? 

Im pretty sure you got a posse going after me titty licking bitch. If you want real tits, Get a fucking Sex-Reassignment surgery prick, Oh and for that negative you just gave me, It wont do shit, Cause your just abusing the trust system, You need to calm down inspector gadget, and put a dick on, and be dealing with jokes like a man.

You just like being a fake member of this community, I dont give a shit, Cause I know your working with theymos, He said he cant do nothing about it, and If you attack me in any other forum, I will sue you, I don't give if im 16, Because in the United States of America, we do stuff right.

Hey, I totally agree with you, I feel your pain with this prick, He is just a pussy because he cant deal with jokes I make about him. Instead he just crys about it like a big fat bitch in his computer room and gives me negative.

LOL - you won't sue shit.  You don't even know if you are male or female.   ::)

It posts it is "Male" on it's profile.
http://imgur.com/DHrRdu3

It's sending PMs to users claiming to be a woman.
http://imgur.com/UoloYrd


Did you tell Theymos that you are passing yourself off as a young woman in order to get loans via PM?  Somehow I think you lied to him as well, and made yourself look innocent. 

LOL, quit bull shitting, If Bitcoin is supposedly anonymous, Why cant we stay anonymous, like keeping safe, Im not going to please your ass Martin.

You're correct about Dank.  Forever I posted hoping to make him understand his brain was damaged.  It's clear no one can communicate with him, and I'm going to stop trying.

You're spot on with the rest.  I'm currently working on a new site that will put an end to a lot of the scams we see everyday, especially with the alt-coins.  I'd ask that you be patient while this service is developed.  Right now I don't have the time or resources to expand beyond my casual investigations.

I feel bad for danky, If I had the power to make him normal, I would.

At least he is attempting to make the community better, instead of adding on top of the already diseased commonality and turning his head or scamming himself.

Guy wants to help these forums and the people here and gets shit on for it. Makes no sense.

So you didn't pretend to be a woman in PM to get a loan?

I know you are only 16 and you think the rules don't apply to you, but start taking responsibility for your actions.

Stay anonymous... I learned that from the bitcoin site...my bad pshhh.

You're right, it makes no sense... Guy tries to get a loan and gets 1) tagged a scammer when he hasn't scammed yet, 2) an accusatory email sent to his employer when he hasn't scammed yet and 3) scammer beware comments about him posted everywhere when he hasn't scammed yet.

Vod, you gettin' paid for your service to the community? I've been trolling the gambling thread for some time and contributing quite a bit... I'm wondering if I can make a few coins by exposing the scams employed by some of those flaky ass casinos. How do I apply, shit. Lol

+1

 I did many successful transactions with members of the forum to gain trust, No all that is gone.  :-\

There is no point even gaining trust anymore if hes going to ruin it. And when I make a new account, He is probably going to ruin it as well, So im sticking with this one.

Well, that's what happens when you lie repeatedly to people.

Learn about consequences and grow up you little crybaby.