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Company Questions
What is IOU Notes?
What does IOU Notes
abbreviation stand for?
Please tell me more
about I Owe You's (IOU) before IOU Notes and how they work?
What kind of company is IOU Notes and why should I Join?
Are there any fees for using the service?
How do I contact customer service?
_______________________________________________________
Service
Questions
How do I signup for account?
How do I access my account?
How do I find others users on IOU Notes platform?
What happens if I cannot find user on platform?
What is IOU Code?
Why should my
business accept IOU Notes?
Wouldn't businesses go out of business if too many people paid with IOU Notes?
What is IOU Credit?
How do I request credit from businesses?
How do I ask businesses to raise my IOU Credit amount?
What is the Minimum Credit that I can apply for with a business?
What is the Maximum Credit that I can apply for with a business?
What is IOU Payments and how it works?
What is IOU Loans and how it works?
What is the Maximum Loan that I can apply for with another user?
What is the Maximum Loan that I can lend without charging interest?
How is IOU Notes different from Credit Cards?
How is IOU Notes different from Personal Loans?
How is IOU Notes different from Payday Loans?
How do I transfer money to and from my IOU Notes account?
_______________________________________________________
Debt Questions
Are transactions on IOU Notes secured with any collateral?
Will my traditional credit score (FICO) be affected in any way?
How much time do I have to pay back?
How do I get pay back from other users?
What happens if user does not pay me back?
Can someone get sued if they don't pay?
How do I collect debt from a client who can't pay? Can I sue them?
What happens if you don't pay someone back? Does it ruin your credit score?
Please Tell me More about IOU Credit Score and Report and how it is Calculated
If I file for bankruptcy does my IOU debt go away?
What happens to someone's IOU debt when they pass away?
_______________________________________________________
Security Questions
What happens if my phone gets lost or stolen, can someone steal my money?
Is it FDIC insured or guaranteed?
How can I avoid getting scammed?
What about identity theft and any legal ramifications on the platform?
_______________________________________________________
Other Questions
Can I barter on IOU? Why not?
Does IOU Notes accept crypto currency? Why not?
What is the IOU Notes Crypto Currency Blockchain Coin?
Is there an IOU Notes credit card?
_______________________________________________________
What is IOU Notes?
IOU Notes™
is a
patent pending platform that provides individuals and businesses with the ability
to provide credit and/or lend money to other individuals and
businesses using an IOU
(I Owe You) form of currency. Securely and easily
setup and track transactions, establish repayment terms of choice
(30 days - 24 months), (0% - 5% interest) and
other related functions with others in one convenient platform from
account signup through to funds settlement.
IOU Notes is not based on a person's traditional
credit score (FICO), but rather on their
IOU Credit Report and their ability
to pay back others. Every user on the IOU Notes
platform can decide if they want to be a borrower or a lender to
others or both. The IOU Notes platform was
created to put the power in the hands of the people. You decide who
to give credit and/or lend to, how much
and the terms.
What does IOU Notes
abbreviation stand for?
IOU stands for the
acronym of the words "I Owe You", which is a verbal or written agreement
between two parties that acknowledges debt between them. Notes is based
on the concept of paper money or other type of promissory note that
equals to the legal monetary value of that note.
IOU Notes takes the
concept of the informal pay later and borrowing method of
IOU's and
turns it into a safe, easy, and powerful form of currency that is
available to everyone.
Please tell me more
about I Owe You's (IOU) before IOU Notes and how they work?
This method is where a
person informally asks for credit from a business (usually from a small
business they know) or borrows money from family, friends, and others in
an informal way. It is with the intention to pay back but a lot of time
either people start asking for the money back, or are too embarrassed to
ask, or the person does not pay back and it creates tensions in the
personal or business relationship. These relationships are built over
many years to establish payment and client history.
IOU's has a history
dating to the 18th century. An IOU between two
people conducting business may be followed up with a more formal written
agreement. There is no standard format for an IOU. Criteria such as
repayment terms, time of payment, interest due, and payment type may or
may not be included. Nowadays there are legal templates available now
for IOUs.
An example
of an IOU in the marketplace is as follows. Say ABC Construction Company
places an order for lumber and other building materials and does not
have enough in payment (credit card, cash, check) to pay for the entire
order when it is delivered. Instead, company pays a down payment and
issues an IOU (I Owe You) promising to pay for the rest of the materials
within 30 days with or without interest. Assuming that supplier is ok
with this and has an established business relationship with ABC
Construction Company, an IOU will be accepted by both parties. Many
businesses operate on Net 30 terms which is also a form of IOU's. They
take possession of the product or utilize the service and have 30 days
to pay off the invoice.
Many service businesses
in the economy currently extend a form of IOU to their customers while
not even realizing it. There are many types of businesses that operate
this way of providing service a payment is deferred until service is
completed. This happens that same day which might be 15 minutes, 30
minutes, 1 hour, or 2 hours, etc. later when customer leaves from place
of business or service has been provided, depending on the service being
provided. These businesses operate on extending short term IOU to their
customers everyday and are not even aware that it is going on.
There are hundreds of
service business types and the majority operate on some kind of IOU,
where they provide service first and get paid after service is
completed. A few examples of these types of businesses include sit down
restaurants, bars, hair salons, dentists, auto mechanics/service shops,
home repair services, etc. Most of these businesses provide service
first to the customer and there is no credit check, identification
provided, collateral provided, or many times not even the customer's
basic information (name, address, phone number) is asked for before
service is provided. It has become standard practice in the marketplace
for most service businesses to just provide the service and the customer
will pay immediately afterwards. The IOU Platform takes this already
established practice and extends it for a longer timeframe/pay later
option and also includes this model to product based businesses and
individuals operating as sole proprietorships.
What kind of company
is IOU Notes and why should I Join?
IOU Notes is an Financial Technology
Company based in South Florida. Our mission is to empower all
individuals, families, and businesses with financial freedom and to
leverage their inherent rights. We are an alternative to high interest
credit cards and loans and to help people get out and stay out of
excessive debt.
Before banks and other financial institutions told us our worth and
decided our credit limits, individuals, families, and businesses made
agreements and it was backed by their word, which was as good as a
contract. As time passed and things changed, the standard practice
changed to contracts and other methods were established.
These days Financial Institutions (Banks, Credit
Unions, Lenders) and Larger Companies who have the resources,
provide credit and/or loans to others. This relates to
these institutions decide the
terms which equals to higher interest rates as high as 29%
APR plus late and other fees.
Payday
loan APRs can total 400% or more when you factor in all the fees and
interest.
IOU Notes is here to put the power into
those hands of the masses. With the IOU Notes platform every person is
their own bank. The platform extends money creation and
generating new money into the economy abilities to all people and
businesses in every country (currently available only in US)
regardless of their background, gender, race, religion, political
affiliation, economic status, education, income level, or any other
factors that people use to create differences.
Are there any fees for using the service?
It is Free to open an account for all users (individuals and business)
and Free to use the service. However, IOU Notes does charge users that
are the recipients of IOU Payments and Loans at a rate of 2.9% which is
comparable to other services such as credit card processors. This processing fee is how the IOU Notes
operates and is our company's source of revenue. Please keep in mind that our
technology is Patent Pending, we are only company to offer this form of IOU
Currency, and will never sell your personal data like others companies do.
With other companies your personal data is the product and is sold to
Advertisers and Marketers so that is how they are able to offer a
completely free service.
How do I contact customer service?
For faster service for existing users
contact support@iounotes.com
with any questions, issues, or concerns that you have. For any other
related questions or inquires for non-users contact
info@iounotes.com Our toll free
#, 1-844-MY-IOU-Notes
(694-6866) has automated messages at this time.
How do I signup for account?
A user (individual or business) can open a Free IOU Notes account by
clicking here or from any device with an Internet connection and
browser such as cell phone, tablet device, laptop computer, or desktop
computer.
How do I access my account?
By clicking here or from the app on your cell phone or tablet device.
How do I find others users on IOU Notes platform?
Once logged into your IOU Notes account you would go to the search bar
to locate other users (individuals and businesses). Searches can be
conducted by entering business name, personal name, email address, or
phone number of the person or entity that is being searched. There is
also an activity and contacts feature that users can see everyone that
they connected with on the platform.
Searches enable users to
connect to each other to perform functions such as Pay Later for a
product/service that user wants from another user, or offer another user
to pay later for product/service offered by that user; Get credit
approved with another user that user is requesting it from, or offer
credit with other users, or Request loans with another user that user is
requesting it from, or offer loans with other users. In addition users
can also be located fast be scanning their IOU Code.
What happens if I cannot find user on platform?
If search is conducted and other user that is being searched for does
not currently have an account on the IOU Notes platform, user can have
platform send other user an invitation by email and or text by having
their contacts merged with system or manually entering the other user
cell phone number and/or email address.
What is IOU Code?
Each user on the IOU Notes platform has a scanner feature to scan other
user's IOU Code to connect to that user faster. Once IOU code is
scanned, user can request and/or offer payments, credit, or loans to
that other user. The IOU Code is an alternative to the search feature in
the IOU Notes platform where users have to enter personal or business
name, phone number, or email address to locate the user on the platform.
Why should my
business accept IOU Notes?
The IOU Platform gives any businesses the ability to offer their current
and future customers an internal credit and pay later option that once
was available to only larger companies that could issue their own store
credit program. Leveraging the IOU Platform, small businesses can reach
a larger audience in their community by offering a very attractive get
product/service now and pay later and not have to worry about large
interest rates. Your customers will apprentice that you offer IOU Notes
and this will help your business remain competitive and can help
establish both trust and loyalty with customers.
IOU Notes also gives users the opportunity to change their spending
habits to change and start to use the IOU Platform for the smaller and
mid level purchases and use credit cards for only larger purchases. As
more users signup on the IOU Platform and this form of currency is used
and accepted everywhere, then in the future the IOU Platform can also be
used for larger purchases also, as businesses allow and extend more
credit to users.
Wouldn't businesses go out of business if too many people paid with IOU Notes?
The answer is no. Nowadays if you do not give
your customers the convenience of paying with many payment options
your customers will go somewhere else.
Many service businesses in the economy currently extend a form of
IOU (I Owe You) to their customers while not even realizing it.
There are many types of businesses that operate this way of
providing service and IOU Payment (also referred to as payment) is
deferred until service is completed. This happens that same day
which might be 15 minutes, 30 minutes, 1 hour, or 2 hours, etc.
later when customer leaves from place of business or service has
been provided, depending on the service being provided. These
businesses operate on extending short term IOU to their customers
everyday and are not even aware that it is going on.
There are hundreds
of service business types and the majority operate on some kind of
IOU, where they provide service first and get paid after service is
completed. A few examples of these types of businesses include sit
down restaurants, bars, hair salons, dentists, auto
mechanics/service shops, home repair services, etc. Most of these
businesses provide service first to the customer and there is no
credit check, identification provided, collateral provided, or many
times not even the customer's basic information (name, address,
phone number) is asked for before service is provided. It has become
standard practice in the marketplace for most service businesses to
just provide the service and the customer will pay immediately
afterwards. The IOU Notes platform takes this already established
practice and extends it for a longer timeframe/pay later option and
also includes this model to product based businesses and individuals
operating as sole proprietorships.
In addition, many
types of businesses operate on Net 30 term which is a credit term
extended to your customers requesting that payment be made within 30
days of the invoice date. There are many benefits of using Net 30
such as expanding your customer base, offering a strong incentive to
your customers, helps your business remain competitive, and builds
customer loyalty. Many customers appreciate the Net 30 payment
option, particularly those that be experiencing cash flow issues or
restructuring their debt. Also many customers are used to buying
most items with credit cards and would rather prefer to use IOU
Notes as a safety net in case they need a little extra time to pay
back or need to juggle around a few bills at least they do not have
to worry about late fees and high interest rates. Many people live
paycheck to paycheck and just missing one paycheck could cause their
financial situation to go into a whirlwind. Your customers will
apprentice that you offer IOU Notes and this will help your business
remain competitive and can help establish both trust and loyalty
with customers.
IOU Notes is an
extension of the net 30 days concept except all transactions are
made easily on the safe and secure IOU Notes platform and helps to
streamline and facilitate the process from start to finish and users
can set their own payment terms (term length 30 days - 24 months)
(interest rate 0% - 5).
What is IOU Credit?
In the case of IOU Credit (also referred to as credit) provided by a
business either to an individual or another business all details of the
transaction will also be placed in both user's IOU Platform accounts.
Since IOU credit is being extended from one user to another, for these
transactions funds are not being transferred initially. Instead user
gives another user an IOU credit limit and then other user that received
the credit purchases goods and/or other services from that business.
Payment is paid at a later time to that business through user's IOU
Platform account at any time or before due dates (30 days) or agreed
upon interest (example 5% APR) will start. For illustration purposes,
User A (John Doe) requests from User B (ABC Restaurant) an IOU Credit
Request in the account by locating user (in this example User B - ABC
Restaurant) that they want to request credit from and clicking on IOU
Credit button. The IOU (I Owe You) platform next gets this request and
sends an email to User (in this example User B - ABC Restaurant) and
also notification get placed into their IOU (I Owe You) platform
account. User will then be given access to view user's account profile,
and IOU Credit report where they can decide if they should give that
user (individual or business) credit and how much of it. Business can
also set in their account for everyone or a case by case basis other
parameters such if there is an interest rate and that rate and credit
length term from the time of each purchase.
How do I request
credit from businesses? (click for
video, or illustration)
First search for business using the search bar in platform. After
selected business is found using one the available methods (business
name, email address, or phone number), user can request IOU Credit with
that business by clicking on button. Next platform sends request to
business account holder by email and an in account notification.
Business user can then accept, deny, or not response to request. If user
accepts access from other user, they will now have access to user's
account profile that requested access where they can view IOU Credit
Report and decide if they want to extend credit to this user, if yes,
they can decide on the available credit amount to allow, and the other
terms such as payment length and interest. IOU Credit Report that can be
viewed from other user's profile to help with their decision includes
details such as their name, date joined IOU Notes, number of
transactions, IOU Score, IOU Credit limit from other businesses, number
of vendors that have credit with, Payment history, any IOU Loans
received, given, if applicable, and their IOU Overall Rating and Grade.
Business users can have
all these account features enabled or disable the features that they do
not want to offer. They can also enable features for certain users and
disable for other users as they see fit for their particular business.
In addition, individual
users can also have the ability to extend IOU Credit to other users for
items such as selling personal property, etc. by enabling that feature
in the Account Settings of their account.
How do I ask businesses to raise my IOU Credit amount?
(click for video, or
illustration)
Search for business in your account and click on request credit
limit increase to do so. A notification will be sent to that business.
It is recommended that only request credit limit increase from
businesses that you have paid back on time.
Businesses can Increase
or Decrease IOU Credit at anytime; set optional rules for this user such
as Credit Payback Length (1 - 24 months), Set Interest Terms (0% - 5%)
charged past initial 30 days period by selecting the corresponding radio
buttons, dropdown menus, and entering the submit button to make the
changes. Set Credit Limit can also be accessed from IOU Credit Details
for that user that is viewed.
In addition, individual
users can also have the ability to extend IOU Credit to other users for
items such as selling personal property, etc. and if they enabled this
feature in their account a request credit limit increase link will also
be available.
What is the Minimum
Credit that I can apply for with a business?
The minimum credit that the IOU Notes platform allow users to apply for
credit with another user is $10.
What is the Maximum Credit that I can apply for with a business?
The maximum credit that you can apply for with another user is currently
$10,000. It is up to each user to decide on how much credit they are
comfortable extending and to which users that they will allow. In the
future we will raise this maximum credit limit. Please consult your tax
professional for any tax legal ramifications for extending credit to
others.
What is IOU Payments and how it works? (click for
video, or illustration)
IOU Payments allows users to conduct transactions between themselves and
make payments later for those products or services. While in account and in IOU Payment section, user selects to either make
an IOU Payment Request (request from other user payment for the product
or service that they received or will receive) or Offer (offer to other
user payment for the product or service that user requesting offer
received or will receive). Next user would enter the amount of the
transaction total for the product or service. Then user would select
what transaction reason is for from a long list of choices generated and
stored in the platform (user can save there own custom entered choices
also for future use). If other reason was selected, then text box would
appear so custom words could be added for that transaction. Next user
would set the terms, these include loan length (1-24 months) and
interest charged past the initial 30 days (0% - 5%) Then if user wants
to include a receipt, invoice, or other item to include in the payment
transaction record there is a camera icon that can be clicked. If
clicked user can take photo or attach file from their device. After all
IOU Payment details are entered, user submits request by clicking on the
submit button.
The platform would next
receive the request from User A and send request to User B by email and
also as a notification in their IOU Account. Once User B accepts payment
request or offer, transaction details (date, business info, product or
service received, terms, etc.) gets recorded in both User A and User B
accounts. The user that received the product or service will have the
amount recorded as a liability and the user that gave the product or
service will have the amount as a future receivable. In the event that
if one user does not accept or declines the request or offer then the
transaction does not take place and does not get recorded and posted to
each other's account.
What is IOU Loans and how it works? (click for
video, or illustration)
IOU Loans allows users to conduct loan transactions between themselves
safely, and securely. While in account and in IOU Loans section, user selects to either
make an IOU Loan Request (request from other user a loan for needed
help) or Offer (offer to other user a loan for needed help). Next user
would enter the amount of the loan total requested or offered. Then user
would select the loan reason from a long list of choices generated and
stored in the platform (user can save their own custom entered choices
also for future use). If other reason was selected, then text box would
appear so custom words could be added for that transaction. Next user
would set the terms, these include loan length (1-24 months) and
interest charged past the initial 30 days (0% - 5%). Then set the
funding method, which includes either default method of transferring
funds from IOU Account or offline method Cash or Check. If user selects
either Cash or Check, the IOU Note platform will still have all the
transaction details but since the Cash or Check transfer will not take
place on platform it is up to both users to verify that loans funds
where given or received.
In this scenario users
would have to verify in their account that they received/transferred
loan funds and then when loan was paid so transaction will be closed on
the platform and also in both users accounts. If a user received or
transferred loan funds using an offline method (cash, check), the other
user can decide to pay back using transfer from IOU Account. This can
also take place vice versa, Initial transfer from IOU Account and get
paid back by offline method (cash, check). Transactions funds can also
stay entirely online by IOU Account or entirely offline (cash, check).
If transfer or repayment of loan is paid from IOU Account then the
platform will automatically transfer payments and close out the
transaction. Users can specify in their account if they want to offer or
receive loans and if yes which funding methods they will allow. Next if
user wants to include a receipt, invoice, or other item to include in
the loan transaction record there is a camera icon that can be clicked.
If clicked user can take photo or attach file from their device. After
all IOU Loan details are entered, user submits request by clicking on
the submit button.
The platform would next
receive the request from User A and send request to User B by email and
also as a notification in their IOU Account. Once User B accepts loan
request or offer, transaction details (date, user info, loan amount,
reason, length, terms, funding method, etc.) gets recorded in both User
A and User B accounts. The user that received the loan will have the
amount recorded as a liability and the user that gave the loan will have
the amount as a future receivable. In the event that if one user does
not accept or declines the request or offer then the transaction does
not take place and does not get recorded and posted to each other's
account.
What is the Maximum Loan that I can apply for with another user?
The maximum loan that you can apply for with another user is currently
$10,000. It is up to each user to decide on the loan amount that they
are comfortable extending and to which users that they will allow.
What is the Maximum Loan that I can lend without charging interest?
The maximum loan that you can lend without charging interest, per IRS
rules is $10,000. After this amount interest rate must be comparable to
current market rates. The IOU Notes Platform is currently set to $10,000
cap so users do not need to worry about this. In the future we will
raise this maximum loan, Please consult your tax professional for any
tax legal ramifications for making loans to others.
How is IOU Notes different from Credit Cards?
IOU Notes work different from credit cards in the following manner.
Banking or Credit card company extends a credit limit to a user (for
example $1,000) and that user can spend the funds anywhere that card is
accepted. User makes a purchase at a business (for example spends $250)
and then another business in same day ($125) and takes possession of
bought item or service from those businesses. Bank or credit card
company gets details of transactions and send funds to those businesses.
IOU Notes allows users
to request or offer credit and/or loans directly to one another and
function as the bank or credit card company. These companies extending
the credit to other users decide the particulars. If they are extending
credit to that other user, if so how much, and if there is a term length
that it must be paid back by, and if any interest will be charged passed
30 days mark, and if so how much. Since they are extending credit
directly to others, the user who receives the credit can purchase goods
and services offered by that business.
They also pay other
users back directly through the IOU Notes platform instead of paying one
entity who then in turn pays all the vendors like traditional credit
cards work. Users can also request an increase in credit from users that
they are working with on the platform. The IOU Notes platform does have
an easy option that users can pay all users that they owe funds to in
one transaction or partially pay or decide which users to pay.
How is IOU Notes
different from Personal Loans?
There are many situations where individuals and businesses need to
borrow money to either pay for immediate expenses (food, rent/mortgage,
child expenses, family expenses, etc.) or business expenses (payroll,
inventory, supplies, etc.). Current options to borrow are from banking
and lending institutions who charge high interest rates. Some unsecured
loans offer zero or low interest rates for a time period but then
afterwards interest rates spike up as much as 35% APR (annual percentage
rate) plus late and other fees. These loan companies lure people into
their trap knowing that there will be many people who fall into this
interest trap. Once in debt it is hard to get out.
IOU Notes works
differently from personal loans in that users (individuals and business)
are borrowing directly from other users on the platform. Since they are
working directly with these other users they can easily, safely, and
securely set the terms length set their own payment terms
(term length 30 days - 24 months) (interest rate 0% - 5).
How is IOU Notes different from Payday Loans?
A payday loan is a short term loan that are offered to individuals to
cover short term immediate cash needs until that individual gets their
next paycheck. These small dollar (ranges from $50 to $1,000), high cost
loans usually charge triple digit annual percentage rates (APRs), and
payments are typically due within 14 days. If the loan is not paid back
in full in that 14 day period, then late fees are assessed and many of
these type of loans rollover and renew themselves. This means any
partial payments that were paid go only towards interest and not the
principal that was borrowed.
Payday loans function differently than
personal and other consumer loans. Most companies that offer this type
of loan is through a physical branch with a payday lender or online.
Many payday lenders have few requirements for approval. Most do not run
any credit check on their customers or even verify that the borrower can
repay the loan. All is needed is typically a form of identification, a
bank account, and a steady paycheck. According to many studies, payday
loan APRs can total 400% or more when you factor in all the fees and
interest. Many people that resort to payday loans, have poor credit or
do not have other financing options.
IOU Notes works
differently from payday loans in that users (individuals and business)
are borrowing directly from other users on the platform. Since they are
working directly with these other users they can easily, safely, and
securely set the terms length set their own payment terms
(term length 30 days - 24 months) (interest rate 0% - 5).
How do I transfer money to and from my IOU Notes account?
IOU Notes accounts allows users to connect their bank account or
multiple bank accounts if they choose to their IOU Notes account.
Banking link is established using industry standards such as user would
enter first enter their bank name, routing number and account number and
click on submit button to initiate the process. User would then either
login into their bank account online (username [some systems email
address], and password) to complete verification and link accounts
instantly by clicking on agree and link button or can select slower
option to link account which consists of IOU Platform or authorized
third party depositing 2 small amounts into that user's bank account
(example: .13 cents, .29 cents). User would next have to check that bank
account in the next day or two for the amount's. Next they would log
back into their IOU Notes account and enter that amount's in the
banking link section to establish the connection. User could then
transfer funds from their bank account to their IOU Notes account as
needed or desired to pay for their IOU credit purchases and or loans
received. Likewise this connection allows funds from their IOU Notes
account to also be transferred to the banking account as needed or
desired. Users can also connect multiple bank accounts to their IOU
Notes account if they choose.
Are transactions on IOU Notes secured with any collateral?
IOU Notes is considered unsecured credit and loans and are not secured
with any collateral. Common types of other types of unsecured debt in
the marketplace are credit cards, most personal loans, payday loans,
medical bills, and student loans.
Will my traditional
credit score (FICO) be affected in any way?
IOU Notes is separate from your Traditional Credit Score and not based
on that method of evaluation. Your traditional credit score will not be
affected in any way for using IOU Notes. In addition, IOU Notes gives
the user a unique opportunity to build up their intrinsic credit with
others and not affected by any later fees and high interest rates found
with credit cards and other loans.
How much time do I have to pay back?
For both IOU Payments and Loans on the platform each user is given
30 days to start paying back what is owed. After that it is up to
the terms set between users (1 - 24 months)
How do I get pay back from other users?
Users are sent email and in account notifications to pay their
outstanding upcoming balances once a month similar to a credit card
statement. Users can then choose to pay full balance, partial
balance, or the users that they want to pay back. Users can also
automate and setup automatic payments.
What happens if user does not pay me back?
Platform is set to maximum of having to pay 6 months late payments
in user accounts, any other user that was owed money and 6 months
late that user would have to pay those account balances first before
platform will allow them to make future purchases or loan requests.
Can someone get sued if they don't pay?
The
IOU Notes platform only allows one account per individual or
business entity. Every account created must be a real person or
business entity and go through a verification process. The platform
is setup that users have to pay other users that they owe if they
want to continue to use IOU Notes. Furthermore delinquent user
accounts will be suspended from further activity if not paid. IOU
Notes are real transactions between users are just like any other
activity in the world it is possible that someone can get sued but
not likely if users use the platform responsible.
IOU
Notes encourages users to pay each other and recommends that first
users build up credit or loans amounts allowed to others in
increments to see their payment history. Next it is recommended to
view users IOU Credit Score and Report before making a decision. IOU
Notes is a unique opportunity for users to leverage and build up
their own intrinsic credit. This platform was created and is user to
user based to help level the playing field as an alternative to
traditional high interest/hidden fees credit card and loans. With
IOU Notes amount owed plus interest (0% - 5%) will stop at term
length. In addition, IOU Notes does not have any late fees like
credit cards.
The
good thing for creditors is that IOU Notes accounts never get
closed. One a user is in the system, even they stop using IOU Notes
or paying back what they owe, their account balance and details will
still remain. If user ever tries to get back on the platform they
will have to use their account and pay back any credit or loans
owned. Only users that are owed funds can reduce or erase amounts
owed to them. IOU Notes is not like credit card and other loans
where interest will continue to accumulate past loan term. Platform is set to maximum of having to pay 6 months late payments
in user accounts, any other user that was owed money and 6 months
late that user would have to pay those account balances first before
platform will allow them to make future purchases or loan requests.
How do I collect debt from a client who can't pay? Can I sue them?
Each user account on the IOU Notes platform is set to go into
delinquent status after 6 months of being late on payments. It would
be foolish for users to not have to pay back other users on the
platform since there are no late fees, interest rate is low (0% - 5%
max), other users can see that user is delinquent (if they had
access from user before) and platform is not based on traditional
credit but rather building up a person's intrinsic credit. After 6
months late, user would have to pay those account balances first
before platform will allow them to make future purchases or loan
requests. Just like any real life transactions users can sue other
user if they choose but IOU Notes is hear to try as resolve any
disputes that could arise.
What happens if you don't pay someone back? Does it ruin your credit score?
IOU Notes is separate from your Traditional Credit Score and not based
on that method of evaluation. Users acknowledge when signing up for the
IOU Notes platform that they cannot base their credit and loans
decisions on other user's Traditional Credit Score but rather must be
100% based on IOU Notes activity.
The IOU Platform has its
own IOU Credit Score that users can utilize to evaluate others credit
and loan worthiness and decide to do business with. This IOU Credit
Score is independent of the traditional credit score used in the
financial industry. Every user will have the opportunity to start from
fresh and establish their IOU Credit Score. Their traditional credit
score will not factor in at all and users should judge other users on
the IOU Notes platform based on their IOU performance and not their
traditional credit performance. Please see next question for more
details about this.
Please Tell me More about IOU Credit Score and Report and how it is Calculated
IOU Credit Score are calculated using many different forms of IOU
Platform data. This data is grouped into many categories such as IOU
payment history (which consists of number of IOU transactions, dollar
amounts of IOU transactions, average length to IOU repayment), IOU
amounts owed vs. IOU credit, length of IOU credit history, number of
users with credit history with, working with other users in different
business categories, and loan mix if applicable. With the IOU Platform
the more users that other users have good working relationships with the
higher their overall IOU credit score will be. This is because more
users that extended credit and loans (if applicable) to other users and
that they pay back regularly it displays that they honor their
commitments with a large number of vendors.
IOU Credit Score considers
both positive and negative information in the IOU Credit Report.
Negative information will be such items as late payments, not paying
backs IOU credit/loans, or paying them back very late. Reestablishing a
good track record of making payments on time and changing related bad
habits will raise overall the IOU Credit Score.
The IOU Platform has
different components of calculating IOU Credit Score above and the
overall method to determine IOU Credit Score for a particular user at
any given particular moment has been presented for the purpose of
illustration and description only and are not to be construed as
limiting the scope of the invention in any way. These are different
percentages of importance for each listed category.
Users IOU Credit Score can
change frequently based on the constant input of new data (transactions
and other related factors). In this section we will go over each
deciding factor of the IOU Credit Score.
IOU Payment History: Other
users on the IOU Platform whether they are lending money, or providing a
product or service to other users wants to know that they will get paid
what is owed to them. Next if they will get paid on time. IOU payment
history also includes which other user accounts were paid on time, the
amounts owed, number of other transactions, and the length of any late
or non payments. This helps other users figure out the amount of credit
or loan that they are willing to extend to that particular other user.
IOU amounts owed vs. IOU
credit: This data includes the number of other users accounts that are
owed money to, the type of debt, and its total amount. Also included is
the ratio of money owed to credit available also known in traditional
credit industry as credit utilization rate.
Length of IOU Credit History: This data includes a wide
range of variables such:
- How long user has been on the IOU Platform.
- The age of transactions with user's newest, oldest, and average age of
all other users.
- Different types of users (example: different business categories) and
user's transactions with them.
The Notes IOU platform
has a rating system for its IOU Credit Score that ranges from 200 Points
to 1,000 points and using a grading system A+, A, A-, B+, B, B-, C+, C,
C-, D+, D, D-, and F+, F, F-.
A+: 950 - 1000 points
A: 900 - 949 points
A-: 850 - 899 points
B+: 800 - 849 points
B: 750 - 799 points
B-: 700 - 749 points
C+: 650 - 699 points
C: 600 - 649 points
C-: 550 - 599 points
D+: 500 - 549 points
D: 450 - 499 points
D-: 400 - 449 points
F+: 350 - 399 points
F: 300 - 349 points
F-: 299 points and below
The IOU
Notes platform allows users to set small amounts of credit such as
starting at $25 to other users and they decide to slowly or quickly
raise their IOU Credit after payments. Each user will establish
different relationships with different users so credit will be reflected
at such. For example, user A has starting credit user B for $25. Over
time and after successful repayment, user B raises credit limit
periodically and now for example at $125. Other users that user A has
been working with have different credit limits with user A that have
been established over time, such as User B has credit limit of $125,
User C has $50, User D $300, User E $750, User F $75, etc
If I file for bankruptcy does my IOU debt go away?
Yes, just like other real world unsecured debt such as credit cards
charges, accounts from collection agencies, medical bills, past due
utility bills, personal loans, business debts and the like, IOU
Notes debt will go away in the case of bankruptcy. IOU Notes
customer service, info@iounotes.com, would have to be contacted in the event of
bankruptcy takes places to remove the debt. It should be noted that
filing for bankruptcy should not be taken lightly as it might affect
future users from extending credit or loans to user that file. A
bankruptcy attorney should be consulted before any action is taken.
What happens to someone's IOU debt when they pass away?
Just like in other real world transactions such as unsecured credit
cards and loans, when a person passes away, their unsecured debt
goes away with them.
What happens if my phone gets lost or stolen, can someone steal my money?
If your phone gets lost or stolen you should immediately log into
your IOU Notes account and change your password or contact support
to put a hold on your account until issue is resolved. In addition
your phone has access to all your personal information so other
accounts and your cell phone provider should also be notified and
the proper steps also taken.
Is it FDIC insured or guaranteed?
IOU Notes is considered the same as other forms of unsecured debt
such as credit cards and loans. Neither is FDIC insured or
guaranteed. Furthermore just like other financial technology
companies such as Paypal, Venmo, CashApp, these companies are
also not FDIC insured because they are not considered banks and does
not take deposits
as defined by federal law, which requires
institutions to have a banking charter.
How can I avoid getting scammed?
Just like any real world transaction it is important to understand
who the other party is in the transaction. If they are requesting
credit from you for your product, service, or for individuals
(selling personal property, etc) it is important that you check out
the other person's IOU Credit Report so you can base decisions on
their payback history and details. If they do not have a lot of
history then extend a small amount of credit to them such as $25 and
see how long it takes to pay back. Then you can slower increase
their credit. The same principles would apply to extending loans to
other users.
What about identity theft and any legal ramifications on the platform?
New users (individuals and businesses) have to go through a
verification process and be accepted on the IOU Notes platform to
use the platform and related various functions. When a user
completes registration form and clicks the submit button, the IOU
Platform receives the request from new user to open an account and
verification process begins. An IOU Platform agent starts
verification process. Every account created must be a real person or
business entity and go through verification process where the user
is confirmed to be a real person or business entity. Next it must
also be determined that the individual or business entity is the one
requesting the account and not a third party. Next it also must be
determined that there are no other open accounts already in use on
the IOU Platform with this individual or business entity.
The IOU Platform does not allow duplicate accounts, second
accounts, fake name accounts, personal alias accounts (only
businesses can have a fictitious name tied to a corporate entity),
and the like. To preserve the integrity of the IOU Platform each
individual user or business entity will be allowed only one account.
Users can delete their account if they choose or the IOU Platform
may also delete a user that violates its Terms and Conditions, which
users will have access to from their account and website. If a user
deletes their account and then at a later time wants to open an
account, verification process starts again but new account is not
created, old user account will be reinstated with IOU Credit
History, Balances, and all other account functions intact to its
original state when user decided to delete.
If identify theft is discovered the platform, IOU Notes will take
the necessary legal actions and include law enforcement if necessary
to remedy the situation.
Can I barter on IOU? Why not?
At this time barter for IOU Notes is not an option. A lot of users
have suggested this but in reality users on barter exchanges usually
increase their prices and are not consistent with their real world
prices for cash, check, credit card payment. Since IOU Notes is
based on the real life currency value on that country's currency,
prices for goods and services would have to match. IOU Notes is not
coupons or discounts. IOU Notes has created a different system for
those that would like to utilize the power of Bartering. It is
called Barter Notes, and to learn more
click here.
Does IOU Notes accept crypto currency? Why not?
At this time
IOU Notes Platform is based only on the currency of that country's country
(at this time only the US Dollar). As we expand our reach Crypto
Currency will be revisited as a possible accepted option on the platform.
What is the IOU Notes Crypto Currency Blockchain Coin?
IOU Notes has plans to launch it's own
crypto currency coin. Other crypto currencies put out a
massive supply of coins in the billions, trillions, and even
quadrillions. IOU Notes will only issue a maximum supply of 10
million coins (less then industry leader bitcoin which has a max supply of 21
million). Once launched no more coins can be issued on the
blockchain. Crypto Currency is a growing in popularity due
to that unlike Governments who print money as needed, most
crypto will remain the same and are capped at each's maximum
supply. Also crypto currency is decentralized and is a peer
to peer based financial supply. The long term practicably of
crypto currency in everyday transactions still has a way to
go but has come a long way in the last few years as more
people learn, trust, and accept this new digital blockchain
currency.
IOU Notes Coins cannot be bought and are not for sale. They
are also not offered by being mined in blockchain
transactions. We are giving them away as a gift of
appreciation to Crowd Funding Supporters that donate $20 or
more for helping expand the IOU Notes Network and reaching
others. Each $20 donated we are giving away another IOU
Notes Coin. This project does not have a launch date at this
time, we only have the IOU Notes Coin parameters at this
time (10 million max coins, etc.). Each person, business,
organization that donates $20 of more, we will issue a
certificate of appreciation to them by email. This email
will have their info and the amount of coins that we will
put in their IOU Notes account wallet as a thank you gift
once crypto project gets launched. We recommend to use same
email address as registered IOU Account. Having an account
is not necessary and we will have instructions on how to get
coins for those that do not have account. International
users can also participate in this crowd fund campaign.
Important Disclaimers:
IOU Notes is a for profit
company and any funds donated are not tax deductible. We
declare any donations as company revenue and pay the
applicable taxes on it. IOU Notes is not offering an Initial
Coin Offering and is not soliciting the selling of Crypto
Currency. We are not a Crypto Currency Brokerage. Users who
donate to IOU Notes should do with the intention of not
expecting anything in return and because they genuinely want
to. This crypto project does not have a lunch date at this
time.
Is there an IOU Notes credit card?
No there is not an IOU credit card and it is not planned (however
debit card for IOU Notes balance in account is being considered). Credit
card companies work differently from IOU Notes in the following
manner. Banking or Credit card company extends a credit limit to a
user (for example $1,000) and that user can spend the funds anywhere
that card is accepted. User makes a purchase at a business (for
example spends $250) and then another business in same day ($125)
and takes possession of bought item or service from those
businesses. Bank or credit card company gets details of transactions
and send funds to those businesses.
With IOU Notes,
users (individuals and business) on the platform are borrowing
(credit or loans) directly from other users on the platform. Instead
of credit card users interact through the IOU platform which has
added text/email verification on each transaction to prevent
fraudulent activity. Since they are working directly with these
other users they can request credit or loans directly from those
other users. They also pay other users back directly through the IOU
Platform instead of paying one entity who then in turn pays all the
vendors like traditional credit cards work. Users can also request
an increase in credit from users that they are working with on the
platform. The IOU Platform does have an easy option that users can
pay all users that they owe funds to in one transaction or partially
pay or decide which users to pay.
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