Cambist?

[Debeer165]

Seen a few ads for a business called Cambist (online platform), which promises a return of 19.5% p/a on investments. No details on the methodologies in the ad itself so I decided to look it up online. Seems they allow you to buy the unpaid debt of other individuals to become the new creditors and owners of an "Active Debt Contract" as they call it.

Anybody here who could give further insight about this? Seems like a risky concept, though it could result in good returns. Not very knowledgeable on how debt collection processes work in such a situation so I decided asking this here would be a good idea.

 

[Creag]

If it seems to good to be true; it is.

 

[Debeer165]

Wouldn't say it seems too good to be true, there is likely to be a large amount of risk inherent to it but I could see it having decent returns. The return seems to be dependent on the debt owed by individuals which they get charged at much higher rates on, so I could see this being an actual thing. The big question is understanding the method better as it seems to utilize a garnishee order system with large debt interest.

 

[moklet]

It will probably give you the return as promised, but at a high cost to the person owing money for whatever reason. It is not a business practise I would like to attach my name to. I know if you borrowed money it should be paid back, but i think their are many unscrupulous lenders out there who don't give a **** and will lend you money knowing full well you can't repay. At the moment you start defaulting the costs and debt start piling up and that is what makes cambist its money. It is your choice, but i won't be able to sleep if I know I profit from someone's misery.

But some reading material to make an informed choice

http://www.moneyweb.co.za/moneyweb-search-results?query_string=cambist

 

[Debeer165]

Yeah having looked at all that and knowing people who've suffered due to being caught in such situations I won't be giving people like this a cent of my money. Many thanks

 

[Greg C]

Seen a few ads for a business called Cambist (online platform), which promises a return of 19.5% p/a on investments. No details on the methodologies in the ad itself so I decided to look it up online. Seems they allow you to buy the unpaid debt of other individuals to become the new creditors and owners of an "Active Debt Contract" as they call it.

Anybody here who could give further insight about this? Seems like a risky concept, though it could result in good returns. Not very knowledgeable on how debt collection processes work in such a situation so I decided asking this here would be a good idea.

A form of ponzi scheme. Why? Because you are buying a book that has potential bad debt. Effectively they get their cash flow immediately that has been rated as low for returns and you take the risk together with the potetial return of it actually being paid. Sometimes can be good,but never last long. Plenty of pl;aces utilise this instead of for instance,selling the bad debt book to a bank for a price.

 

[supersunbird]

Four investments that promise 10% or more
http://www.moneyweb.co.za/moneyweb-investment-insights/four-investments-that-promise-10-or-more

Cambist mentioned.

Personally, I'd go for the 10% interest Finbond Mutual Bank of those 4. If I wanted higher returns for higher risk a diversified portfolio of shares (at can be had through a portfolio of individual shares or Unit Trusts or ETF or mix of them) or if I had an already diversified portfolio and I had some extra money to play with and has any interest in Cambist (which I don't), I would not give more than 5% of my portfolio towards Cambist. Just risky and not diversified enough to have too much in it

 

[yebocan]

Would not touch them with a 10m pool...not going to make my money off the misery of others...

 

[Batista]

Would not touch them with a 10m pool...not going to make my money off the misery of others...

This, although that is how 90% of business works (in the background)

 

[Freaksta]

Sounds like a concept in the US called the lending club! I would invest in the US one. It works by buying tickets in multiple different peoples debt, thus spreading the risk. You can choose what type of risk you are willing to take and that determines the interest you get in return!

 

[peebee174]

A form of ponzi scheme. Why? Because you are buying a book that has potential bad debt. Effectively they get their cash flow immediately that has been rated as low for returns and you take the risk together with the potetial return of it actually being paid. Sometimes can be good,but never last long. Plenty of pl;aces utilise this instead of for instance,selling the bad debt book to a bank for a price.

Except they say if your contract doesn't perform, they buy you out of it, so they take the loss. You buy a new contract and move on.

I know this is an old thread but I was googling (as one does), as a friend of mine just bought a Cambist contract, and hers is performing well. She gets her monthly payments on time, no hassles.

 

[dunkyd]

Sadly the stories are always about , a pal , the minister, cousins nephew, the lady next door etc.
Read the real finance papers for the truth.

 

[Not_original]

Also read up about it . Id rather buy equities . Feel the morality issue too

 

[Arthur]

Ditto. Cambist returns good, but distasteful

 

[Wag]

Bought one for 15k, just for starters. Up to now it's great. Second month.

 

[peebee174]

Well my friend is on month 3 of receiving her payments, so... so far so good.