The Future of Financing: Social Payments
As a business owner, you’ve already made strides in providing services for a larger client base by offering financing options through Denefits. But even if you’re able to help your customer with a reasonable payment plan, some customers will still be unable to make payments. The solution? Social Payments™: a trustworthy crowdfunding resource that allows Denefits customers to receive donations that go directly to pay off their finance contracts.
The Problem: Scams galore on GoFundMe
When unexpected costs come up — whether it’s car troubles, ongoing health issues, or family emergencies — life can create so many unforeseen obstacles for your customers. Fortunately, there are options for those struggling to pay off their medical bills or financial contracts on other much-needed services. Many people use crowdfunding platforms like GoFundMe so their social networks can help ease their financial burdens. Unfortunately for some donors, not every crowdfunding campaign is trustworthy.
While crowdfunding can be a useful way to gather donations for people’s medical and emergency life expenses, it’s also a way to scam compassionate donors out of their hard-earned money. With sites like GoFundMe, there is no way to know exactly how your money will be used if you donate. This makes it difficult for people who are actually in need to receive assistance with their medical bills, because donors are more skeptical of fraud.
Over the past several years, there have been many false campaigns created on GoFundMe to scam sympathetic donors under the guise of helping people pay medical expenses or help strangers:
- A New Jersey couple raised more than $400,000 through a fraudulent GoFundMe campaign to help a homeless good Samaritan and veteran — and all three were in on the scheme. In January 2020, the ringleader Mark D’Amico pled not guilty to federal charges, with 16 counts of conspiracy, wire fraud, and money laundering. The trio pleaded guilty in state court in 2019.
- For three years, a Canadian woman told friends and family she had a rare neurological disorder that took away her vision, voice, and ability to leave her home. In 2015, she was accused of faking a rare illness (chronic inflammatory demyelinating polyneuropathy) and deceiving her loved ones into raising more than $100,000 for medications and treatment she never needed or received.
The GoFundMe campaign goal was set at $1.6 million, before the account was shut down. It showed 553 separate donations, with some in the thousands of dollars. Many donors even opted to make regular monthly donations.
- In May 2018, a woman in Carson City, Nevada was sentenced to five to 12.5 years in prison for faking her son’s death to illegally solicit $2,000 in GoFundMe donations, cash, and gift cards.
- Also in May 2018, a couple in upstate New York raised $3,334 on a GoFundMe campaign asking for donations to pay for medical bills for their son — falsely claiming he had terminal cancer. The boy’s parents were charged with a scheme to defraud and endangering the welfare of a child.
- In February 2020, grieving parents discovered that a photo of their son, who had died from cancer, was being used on an alleged fraudulent GoFundMe campaign.
The Solution: Social Payments
To help customers get the assistance they need, and for kindhearted strangers to help others, Denefits has created Social Payments™. Like other crowdfunding sites, Social Payments™ allow individuals to receive donations for medical bills or other service costs. Unlike GoFundMe, Social Payments™ go directly to the individual’s finance contract payments to pay for services — the future of reliable and trustworthy financing.
Finance customers are able to share their story through their Social Payment page, and receive donations that will go directly toward their contract payments. Donors can rest assured their money is going to a worthy cause, and that the money isn’t being used for anything other than paying off their service costs. This helps patients and customers receiving any service to get the help they need from family, friends, community members, and organizations — to a trustworthy and direct source.
Customers can share their campaign link not only with their own social networks, but with large organizations and nonprofits that want to help. In February 2020, Crossroads Church in Cincinnati, Ohio raised donations to wipe out more than $46.5 million in medical debt across the U.S. There are certainly organizations that want to help patients and customers in need. Social Payments™ make the process easy, safe, and direct.
To help finance customers who otherwise couldn’t afford services; and provide them a reliable means to gain financial help:
- Finance customer with Denefits: Easily create a finance contract for any customer, with no credit check required.
- Provide Social Payment™ link for customers to share on social media: Your customer can have a family member write their story and character on their page, along with a few photos to show donors who they’ll be helping. Donors will know their contributions are going straight to the customer’s payments: to give a lending hand to those who need it most.