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KingArwin

Loaning out money inside second live, is that legal ?

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A friend of mine got in trouble because he loaned money inworld for a whopping interest rate of over 60%....
All to be paid within 30 days.
I told him this is forbidden by linden rules (please correct me if I'm wrong)
They have in their business name that they are not a bank, I assume in an effort to get away with it.
But I think, when you do banking stuff, you basically a bank, even if you claim to be an investment company.

What is the best way to deal with this?

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2 minutes ago, KingArwin said:

A friend of mine got in trouble because he loaned money inworld for a whopping interest rate of over 60%....
All to be paid within 30 days.
I told him this is forbidden by linden rules (please correct me if I'm wrong)
They have in their business name that they are not a bank, I assume in an effort to get away with it.
But I think, when you do banking stuff, you basically a bank, even if you claim to be an investment company.

What is the best way to deal with this?

Who did he get into trouble with?  If its Linden Lab you don't need to deal with it.

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thats what I said, he needed money to pay rent, that does not look like an investment to me 

 

its just another resident renting out money.

Edited by KingArwin

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6 minutes ago, KingArwin said:

A friend of mine got in trouble

You didn't answer my question,  Who did he get into trouble with?

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he rented money from someone for an insane amount of intrestrate, and now he can't pay back in time. 

So he got in to trouble with them, but I feel they can't put a claim on him like that

My feeling is that renting out money like this is illegal in sl 

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As far as I can see here, it's the guy who lent your friend the money who's in trouble, as there's no way they can collect.

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Yes, I seen his contract "a note card" 

Looks like a bad joke to me. 

They claim that linden lab is okay with them doing this, I find that hard to belief. 

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Well he was silly then to accept those terms. 

Its a bit late to complain after the fact.  He could pay back what he owes minus the interest and front it out or report it 

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9 minutes ago, KingArwin said:

I justnow  found out they made him give his rl name.....

Making it posible to sue him rl. 

 

 

Ok that is likely to be abuse reportable 

Why would he do such a thing  *shakes head*

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10 minutes ago, KingArwin said:

I justnow  found out they made him give his rl name.....

Making it posible to sue him rl. 

The amount must be quite substantial for them to pursue him in RL. The cost will probably outweigh the amount they lent to him. Giving your rl name is never sensible in SL, hope he gave a fake one. In SL they basically have no power over him besides maybe trying to grief him. Which will put them in hot water with LL. I would like to note that it is never nice to borrow money and not pay it back but in this case the terms are ridiculous and they have no recourse. It is a resident-to-resident dispute.

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he did not gave a fake name, but she seems to be in the usa, and he is from england, making it hard to get their money back.

Its about 132.00 usa dollar in linden.

80 without intrest

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22 minutes ago, KingArwin said:

I justnow  found out they made him give his rl name.....

 

5 minutes ago, KingArwin said:

he did not gave a fake name

 

tenor.gif

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I still wonder if its aloud by tos to lean out money like this so people can pay for their land

 

Edited by KingArwin

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I am trying to be sympathetic but your friend agreed to all this legal or not and he should probably confess all to LL and see if they can help him with it.  It was a very stupid thing to do, giving his real details.

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17 minutes ago, KingArwin said:

he did not gave a fake name, but she seems to be in the usa, and he is from england, making it hard to get their money back.

Its about 132.00 usa dollar in linden.

80 without intrest

It's not worth USD $132 (barely £100 in his money), it's worth slightly less than feck all for all the recourse this clown can expect from it. At the very most, the lender can take it to LL who might suspend or ban his account (and even then there's the counter argument of harassment and pressuring for RL information in-game), but there will be absolutely no RL consequences. 

I do believe you should repay debts, but I also believe that debts should be set at a reasonable and not totally exploitative level of interest. Lay out ridiculous and pernicious terms like 60% repaid in a month and you deserve to lose your money (and even if you don't, well, you're still going to because that's a completely unrealistic expectation). My feelings about it in SL are slightly different, since nobody NEEDS money here, but the basic principle remains.

If it comes down to it, he can use his ill-gotten Linden loan to pay the £36 it costs to change your RL name by enrolled deed poll in the UK. Unenrolled, it's free. 

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he got scammed rl, leaving him short on money, temporarely...

So he went ahead to get scammed here too..  

Edited by KingArwin
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1 hour ago, KingArwin said:

Yes, I seen his contract "a note card" 

Looks like a bad joke to me. 

They claim that linden lab is okay with them doing this, I find that hard to belief. 

No it is not ok with LL.

Quote

The Second Life Terms of Service prohibit offering interest or any direct return on investment (whether in L$ or other currency) from any object, such as an ATM, located in Second Life, without proof of an applicable government registration statement or financial institution charter. This applies to inworld investment funds, stock offerings, and banking services and the like.

Linden Lab will remove any virtual ATMs or other objects that facilitate inworld "banking," that is, that offer interest or a rate of return on Linden dollars invested or deposited. Those who continue to offer these services may be sanctioned with suspension, termination of accounts, and loss of land.

Usually, Linden Lab lets Residents decide how to act, live, or play in Second Life, but unregulated inworld "banks" brought substantial ecomonic risks to Second Life. Offering unsustainably high interest rates, they are in most cases doomed to collapse, leaving depositors with nothing to show for their investment.

This prohibition does not apply to companies that submit a registration statement, charter, or other applicable license from a governing regulatory authority; or those merely conducting marketing or education, but not accepting payments.

To report a violation of this policy:

  1. Choose Help > Report Abuse in the Second Life Viewer.
  2. Select Fraud > L$.
  3. Follow the instructions. IMPORTANT: Be sure to include the word "bank" in your description.

Read the full policy: http://wiki.secondlife.com/wiki/Linden_Lab_Official:Policy_regarding_inworld_banks

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have rl now, thanks everyone for the answers, will look back here tomorrow and act on it.

Reading selene's respond makes it clear something is realy wrong here  

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