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shadow

Many Filipino families seem to participate in one or more of the local credit coops. Does anyone have first hand knowledge of the ins and outs of doing so? From what I can gather, most operate pretty much the same way, it works something like this;

 

One attends a seminar and pays a small registration fee.

 

One deposits "share capital".

 

One can also avail of other types of accounts, such as savings or ATM accounts.

 

One can borrow money at a rate of 18% (give or take) up to double the amount they have in share capital.

 

One must invest in a certain amount of share capital per year.

 

One can only withdraw the share capital by closing the account.

 

 

So the way I understand this is, if I invest P50,000 in share capital, I can borrow up to P100,000 against it (I can borrow my own money). However, I cannot draw it out unless I close the account. The interest rate varies on loans, but seems to be about 18% per anum. So if I were to borrow P30,000 against my P50,000 worth of share capital, I would be paying 18% interest to borrow my own money?

 

Many of the coops seem to be doing quite well, and appear to be more financially sound than many banks.

 

Input?

 

Example; http://www.phcci.coop/

 

Thanks

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smokey

Many Filipino families seem to participate in one or more of the local credit coops. Does anyone have first hand knowledge of the ins and outs of doing so? From what I can gather, most operate pretty much the same way, it works something like this;

 

One attends a seminar and pays a small registration fee.

 

One deposits "share capital".

 

One can also avail of other types of accounts, such as savings or ATM accounts.

 

One can borrow money at a rate of 18% (give or take) up to double the amount they have in share capital.

 

One must invest in a certain amount of share capital per year.

 

One can only withdraw the share capital by closing the account.

 

 

So the way I understand this is, if I invest P50,000 in share capital, I can borrow up to P100,000 against it (I can borrow my own money). However, I cannot draw it out unless I close the account. The interest rate varies on loans, but seems to be about 18% per anum. So if I were to borrow P30,000 against my P50,000 worth of share capital, I would be paying 18% interest to borrow my own money?

 

Many of the coops seem to be doing quite well, and appear to be more financially sound than many banks.

 

Input?

 

Example; http://www.phcci.coop/

 

Thanks

so if you invest 50 they will LET you borrow it back and another 50 at 18% ???   so your paying 18% on 100,000 p but only getting 50 new money ?

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Nangulo

It says you need collateral for a loan over 10,000 pesos but it doesn't say what the collateral is.  Probably something worth at least the amount over 10k.  So, you borrow 30k and have to have your car impounded?

 

They've been around for a while, which is a good thing, but nothing about PDIC coverage.

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Ozepete

I would be very very careful with Co-ops and not just in the Philippines. They are usually not subjected to the same regulations and scrutiny as banks. 

 

Having said that we got caught by one but not as investors in the normal sense....

...Some executive members of a Cebu Cumminity Co-op approached us late last year requesting help with a building project they had. They needed some bridging finance for two months to complete the program. We were offered a post dated check as security but when pack-back day come, the check bounced. Since the shit hit the fan for us, many locals have told us of their money being held/ lost by this co-op and these people have been unable (or too frightened) to do anything about it. People with small amounts, but  very important to them, being treated with contempt and with little chance of getting their money.

We have been told that large loans have been made to board members who appear to have no intention of honoring repayment. We are in the middle of having estafa charges laid and intend doing everything possible to expose and nail these rotten bastards.

 

Not to say that all co-ops are crooked but I would suggest being very careful and checkout their record keeping and balance sheet.

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shadow

so if you invest 50 they will LET you borrow it back and another 50 at 18% ???   so your paying 18% on 100,000 p but only getting 50 new money ?

Yes, but on the other hand most of these people would not qualify for any type of loan other than 5/6. 

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smokey

Yes, but on the other hand most of these people would not qualify for any type of loan other than 5/6. 

 

we get hit up all the time last trip someone offered us to hold the deed to his 1 hector of land on a 60,000 peso loan ,,, we could of but we knew he could not pay it back ,,, so either give him the money or dont give but to extend a hand with the plan on making a big pay day is just not good kama to me

Edited by Headshot
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To be a member of a coop, one must be a phillipine citizen, so that would rule out most of us here. My wife is a member of a multipurpose coop here in Cebu, the coop seems to be doing well, it runs it's own Health insurance scheme, a private school, a bank, medical centre etc. I think the main purpose of coop's is To promote and advance the economic, social and educational status of the members

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Thelandofku-an

Many Filipino families seem to participate in one or more of the local credit coops. Does anyone have first hand knowledge of the ins and outs of doing so? From what I can gather, most operate pretty much the same way, it works something like this;

 

One attends a seminar and pays a small registration fee.

 

One deposits "share capital".

 

One can also avail of other types of accounts, such as savings or ATM accounts.

 

One can borrow money at a rate of 18% (give or take) up to double the amount they have in share capital.

 

One must invest in a certain amount of share capital per year.

 

One can only withdraw the share capital by closing the account.

 

 

So the way I understand this is, if I invest P50,000 in share capital, I can borrow up to P100,000 against it (I can borrow my own money). However, I cannot draw it out unless I close the account. The interest rate varies on loans, but seems to be about 18% per anum. So if I were to borrow P30,000 against my P50,000 worth of share capital, I would be paying 18% interest to borrow my own money?

 

Many of the coops seem to be doing quite well, and appear to be more financially sound than many banks.

 

Input?

 

Example; http://www.phcci.coop/

 

Thanks

 

Interesting topic, especially for the "have-nots" I would advocate not participating in any financial "scheme" since you would be the least likely to benefit when others are so more needy than you!

 

Would you invest with me on those same terms I wonder?

Edited by Thelandofku-an!
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A_Simple_Man

 

To be a member of a coop, one must be a phillipine citizen,

 

When I go in there and ask if they want my money on deposit they make no mention of that.  Perhaps it is only if you want to be a borrowing member?

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When I go in there and ask if they want my money on deposit they make no mention of that.  Perhaps it is only if you want to be a borrowing member?

Republic Act No. 6938 'The cooperative code of the Philippines'

 

Section 26. Who May Be Members of Cooperatives. - Any natural person, who is a citizen of the Philippines, a cooperative, or non-profit organization with juridical personality shall be eligible for membership in a cooperative if the applicant meets the qualifications prescribed in the by-laws: Provided, That only natural persons may be admitted as members of a primary cooperative.

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shadow

Interesting topic, especially for the "have-nots" I would advocate not participating in any financial "scheme" since you would be the least likely to benefit when others are so more needy than you!

 

Would you invest with me on those same terms I wonder?

Have you been in business since 1971, and do you have P1.2 billion in assets and 35,000 members?

 

Or maybe you would just like to make a high interest short term loan?

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smokey

not bad really a profit of over 3,270 a month per month on a one year 100,000 p loan ...  and 50,000 of that was your own money  so its almost a double your money deal loan 50,000 but collect 39plus in one year 

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Thelandofku-an

Have you been in business since 1971, and do you have P1.2 billion in assets and 35,000 members?

 

Or maybe you would just like to make a high interest short term loan?

JOKINGLY:

Hiya Shadow, I wasn't "pissing on your post, just casting the memory of mine. I'm not a "netizen" and depended greatly upon the printed media (yeah books and journals) and a long,long, (sometimes wrong) memory! 

 

As for the "short term loan (which was a tongue in cheek joke) my integrity, honesty and reputation among the ex-pats I know in Dumaguete (probably including yourself?) and Cebu go far beyond any company I have encountered yet in the Philippines!

 

Statistically;I have been in business since the 1960's with a smaller number of assets and never cheated a soul, I have only one member, he-he!

 

SERIOUSLY:

How many "banks" and "investments" have rolled over in your memory?

 

Although co-operatives are probably more dependable my point was that the "long nose" is the last to get paid back, ask around those who invested in Dumaguete rural banks and the like, I heard that the Filipino Scions with big investments got tipped off about the "belly-up" in time to withdraw their funds I don't know any "long nose" that did?

That same "merchant banker" also previously rolled-over on a pre-need education insurance plan!

 

Previously, some of the guys there in Dumaguete got screwed on what I think was investing in a lending "co-operative" pyramid scam (with a beautiful portfolio) that claimed to pay high interest roughly based on the kind of rate you quoted for borrowing your own money?

 

Before that there was the "Prime Bank" pyramid scam in Dumaguete whereby the staff (I think Manager) advocated investors raising their deposits by millions to compensate for falling interest rates just weeks before the bank "rolled over"!

I remember one guy who had to depart his retirement to go on social security back in the UK! RIP John.

 

Prior to that (early 90's?) there was a similar pyramid scam (co-operative?) called "Pacific Lending Investors/Plans" or something very similar that took my relatives entire lump sum private pension (8,000,000 Php) without making a single interest payment to him, the agent/manager was later found floating somewhere around the old Mactan bridge with almost every bone broken (that could probably be found on the "net").

 

I already mentioned on another thread about the Manila bank "banking holiday scam" that caused it to close it's doors to investors funds for something like 18 years (I wonder what the devaluation was in the savings they eventually got back)?

 

My point is that I personally wouldn't trust anything further than it could be thrown, and I know you for one work too damn hard to deserve being cheated!

 

Respectfully, Pgon...

Edited by Thelandofku-an!
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shadow

JOKINGLY:

Hiya Shadow, I wasn't "pissing on your post, just casting the memory of mine. I'm not a "netizen" and depended greatly upon the printed media (yeah books and journals) and a long,long, (sometimes wrong) memory! 

 

As for the "short term loan (which was a tongue in cheek joke) my integrity, honesty and reputation among the ex-pats I know in Dumaguete (probably including yourself?) and Cebu go far beyond any company I have encountered yet in the Philippines!

 

Statistically;I have been in business since the 1960's with a smaller number of assets and never cheated a soul, I have only one member, he-he!

 

SERIOUSLY:

How many "banks" and "investments" have rolled over in your memory?

 

Although co-operatives are probably more dependable my point was that the "long nose" is the last to get paid back, ask around those who invested in Dumaguete rural banks and the like, I heard that the Filipino Scions with big investments got tipped off about the "belly-up" in time to withdraw their funds I don't know any "long nose" that did?

That same "merchant banker" also previously rolled-over on a pre-need education insurance plan!

 

Previously, some of the guys there in Dumaguete got screwed on what I think was investing in a lending "co-operative" pyramid scam (with a beautiful portfolio) that claimed to pay high interest roughly based on the kind of rate you quoted for borrowing your own money?

 

Before that there was the "Prime Bank" pyramid scam in Dumaguete whereby the staff (I think Manager) advocated investors raising their deposits by millions to compensate for falling interest rates just weeks before the bank "rolled over"!

I remember one guy who had to depart his retirement to go on social security back in the UK! RIP John.

 

Prior to that (early 90's?) there was a similar pyramid scam (co-operative?) called "Pacific Lending Investors/Plans" or something very similar that took my relatives entire lump sum private pension (8,000,000 Php) without making a single interest payment to him, the agent/manager was later found floating somewhere around the old Mactan bridge with almost every bone broken (that could probably be found on the "net").

 

I already mentioned on another thread about the Manila bank "banking holiday scam" that caused it to close it's doors to investors funds for something like 18 years (I wonder what the devaluation was in the savings they eventually got back)?

 

My point is that I personally wouldn't trust anything further than it could be thrown, and I know you for one work too damn hard to deserve being cheated!

 

Respectfully, Pgon...

Well, anything that sounds too good to be true, usually is. Those who invested in the pyramid schemes gambled, and some lost, as happens in any gambling game. Some win, some lose. Those who get in late on a pyramid scheme usually lose. The way I understand the turnout of the Legacy scheme, most of those who were in on the "double your money in 5 years" scheme got most of their money back from PDIC, while those who were extra greedy and invested in the "double your money in 3 years" scheme did not, as the latter was an illegal scheme according to the PDIC regulations or some such BS.

 

The coops are a growing concern, and although if one looks closely at the numbers it seems like a rip off, it is no wonder they are doing well. It is pretty much impossible for the average Filipino to avail of a loan from a bank, and the coops fill a need for something they can use to get them to save/invest, and get their hands on ready cash when they need it. My Bro-in-law's wife got into this program 3 years ago, and they have gone from literally nothing to having their own sarisari and small farm. They now support them selves on it, all made possible by the coop. When they needed P10,000 to pay the mayor's permit, they got it from the coop, paid it back in a few months, and then were able to borrow more.

 

My wife went to the "seminar" last night, and it seems they have other programs not mentioned on their website that are a little more appealing. She was told instead of buying the share capital stocks, to just put the money in a savings account and apply for a loan when she gets about half of what she needs (P80,000). In this way she would only be borrowing and paying interest on P40,000. This of course makes quite a bit more sense. Also there are better interest rates and loan options for those with a track record of paying the money back.

 

My name is on nothing in this country except my passport, not even my motorcycle is in my name.

 

not bad really a profit of over 3,270 a month per month on a one year 100,000 p loan ...  and 50,000 of that was your own money  so its almost a double your money deal loan 50,000 but collect 39plus in one year 

Ya, no wonder they are doing well!

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lazydays

She was told instead of buying the share capital stocks, to just put the money in a savings account and apply for a loan when she gets about half of what she needs (P80,000). In this way she would only be borrowing and paying interest on P40,000.

 

That is very similar to the way the first Credit Unions worked in the UK, maybe they still do.

Whatever ammount you had in your savings account you could borrow double that ammount. Your initial savings ammount would be frozen in your savings account as security. You could not draw on the savings account until the loan had been re-payed.

In the worst case scenario the Credit Union would only lose 50% if you did a runner and dissapeared.

Edited by lazydays
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