How Susu works. A group of people regularly pays a fixed sum into a pool held by a Susu collector. Each time group members make a contribution, one of them receives the entire sum. Thus, if 20 people each contribute 10 dollars per week, every one of them will receive 200 dollars at a certain point in time.
Are susu legit?
It’s also the greatest form of “scammery.” That’s why scammers are imitating a type of informal savings club known as a “sou sou” or “susu” to trick people into joining what amounts to an illegal pyramid scheme. … This way of saving is based on the honor system, and it is not without risk.
Is susu a scheme?
SouSou savings scheme is a kind of rotating gifting process, where all the participants go through 4 different positions of the scheme and each member needs to make another two members join the scheme. All these members contribute a certain amount of gift money once during the gifting period.
How does the $100 to $800 work?
Here’s how “The Blessing Loom” scheme works: You’ll see an octagon that must be filled with names of participants. You are told that if you pay $100 to get a spot, you recruit other people, and once your name makes it to the center of the octagon, you get $800.
How do I run a successful Sou Sou?
Here’s how I started a sou-sou to help me make enough money to get my cake-decorating business off the ground.
- Determine How Much Cash You Need to Start Your Business. …
- Find Cash in Your Budget and Earn Extra Money. …
- Form a Group. …
- Choose a Cash Collector. …
- Decide on a Reasonable Contribution. …
- Propose Accountability.
How does the Sou Sou work?
A sou-sou is a group of people who come together and make regular weekly, biweekly or monthly monetary contributions to a common fund, which is then disbursed as a lump sum to one member in each cycle. For example, say 10 people join, and each puts in $100 a week.
Is the blessing circle a scheme?
It’s a promised return better than the stock market, but law enforcement officials warn it’s also illegal. Blessing looms, or “gifting circles” as they are referred to, are illegal, according to law enforcement. … He says these gifting circles are nothing more than Ponzi or pyramid schemes.
Why are gifting circles illegal?
“Schemes like this are illegal because they’re inherently harmful.” Here’s another reason to avoid this scheme. You could be charged with tax fraud. … In 2013, a federal jury found two Connecticut women guilty of tax fraud for running a gifting circle and not paying taxes on their gains.
Why do people do susu?
Susu is a community based savings practice where family and friends come together in order to borrow and lend money to each other. This is a popular way to save in a lot of countries around the world. … The group is usually family and friends who are trustworthy.
Is there a sou sou app?
Sou Sou offers alternative financing solutions through the Sou Sou app, which helps women build their investor worthiness by saving, networking and building the credit and cash collateral needed to attract a loan from Sou Sou’s partner banks and investors.
Is Sou Sou legal in Trinidad and Tobago?
WHILE pyramid schemes are not illegal in TT, the Emancipation Support Committee (ESC) is against the use of the word “sou-sou” to describe many such schemes.
How long can a sou sou last?
The $20,000 sou-sou runs or 18 months, the $10,000 saving club lasts 10 months. For the person who gets the first disbursement, it’s an interest-free cash advance and for the last payee it’s a no-interest savings plan.
Is money gifting illegal?
Cash gifting is when someone gives you a sum of money as a gift rather than in exchange for goods or services. … However, it can also be an illegal pyramid scheme that can cost you money and potentially land you in jail. Anytime you are giving or receiving cash as a gift, make sure you are doing it legally.
Is the Susu legal?
Since sou-sous are not regulated by any laws and can, therefore, be risky if someone untrustworthy joins, if you are considering joining one make sure it is with people that you know well and trust. Usually, sou-sou members are from the same family or a close-knit community.
Do gifting circles work?
Gifting Circles vs Gifting Schemes. True gifting circles are good. They help people save money and waste fewer resources. … They may be private or public, members may or may not know each other, and they operate in a similar way: members assist each other in fulfilling wants and needs with their many resources.
Are all gifting circles illegal?
Organizers keep creating new names for gifting clubs, such as “Friends Helping Friends,” “Women Empowering Women,” “Airplane,” and “Pit Stop,” but these clubs all work the same way and are all illegal.
Is Sou Sou illegal in the United States?
Historically, sou-sou methods were the key to survival for people in West Africa and the Caribbean who used the savings to invest in their communities. Karen Hobbs, assistant director in the Division of Consumer and Business Education for the FTC, warned of the danger of joining an imitation sou-sou scheme in an Aug.
What is Sous sous?
Sus-sous, or sous-sus, is a classical ballet term that translates to “over-under” and describes when a dancer springs onto releve demi-pointe or pointe, quickly placing the back foot more closely behind the front in fifth position with fully stretched legs.
Can you go to jail for blessing loom?
Blessing loom program is an illegal pyramid scheme: Internet Scambusters #928. A “Blessing Loom” may sound like a highly beneficial program or even a sacred object. … It’s a pyramid scheme and a scam that could draw you into an illegal involvement, which could, in turn, land you in jail.
Can I get my money back from a pyramid scheme?
Once Ponzi schemers are discovered, it is usually the case that the schemer has spent all or most of the money. So while you could certainly sue the Ponzi schemer and very likely win a judgment against them in court, it’s unlikely you’ll recover any money at the end of the day.
What is the new pyramid scheme?
The Bottom Line
A pyramid scheme is a common form of financial fraud based on attracting new investors to pay off early investors. The most famous pyramid scheme is the Ponzi scheme.
What is the role of Sou-Sou?
A sou-sou is a group of people who pool their savings by making regular contributions —weekly, biweekly, monthly — to a fund which is then paid out to each member of the group according to an agreed upon schedule. So here’s how it works: The group elects a treasurer to collect and distribute the money.
Is there a susu app?
SUSU VAULT INVESTMENT
The SUSU App is a platform for users to create wealth and multiply their money. … Users can request money, making it easier to send money to loved ones with just a swipe.