Q: I am starting an online business through Digital Altitude. They have asked me to take out a line of credit. HELP!
I am starting an online business through Digital Altitude. I have to purchase the next level of the "pyramid" to make any money. There are lots of testimonials saying how amazing they are but I am still not sure. They have asked me to take out a $50,000 line of credit, through Oak Tree Financial, to purchase the next level. How should I proceed?
A: You should proceed with caution and take no action without the advice of counsel. Your understood one set of circumstances to justify your initial involvement or investment. Now you are being asked to borrow money to "purchase" the next level. You have characterized the arrangement as a "pyramid" arrangement. You should be testing your involvement in such an arrangement by consulting with an attorney who could help you evaluate it. Some questions that might be appropriate might include: Why is the arrangement requiring you to borrow money? What are the terms for borrowing the money? What are you buying with the money? What are the risks that you will lose the investment you have made, the borrowed money, and have to pay back the loan with money from other resources you have (or don't have)? Are there blue sky laws that apply to this transaction and has the company promoting this "pyramid" complied with those laws?
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.