money collection

33
Posted 13th Sep
One of my relative helps people save money by collecting money from them monthly e.g., £200 from 10 people and drawing their name in a hat, whoever name comes up get the collection for that month and continues to pay for rest of the period and the cycle continues.

Is there a name for this and is this legal?
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It isn't illegal. It is basically just a money pool. Pointless though.
33 Comments
I can't see how this helps people save money. One would need to win within 10 months or you are on loser. If you are lucky to win, how much as a person put in to receive £200...... it could be a lot more than £200.
It isn't illegal. It is basically just a money pool. Pointless though.
steve.t13/09/2019 16:54

I can't see how this helps people save money. One would need to win within …I can't see how this helps people save money. One would need to win within 10 months or you are on loser. If you are lucky to win, how much as a person put in to receive £200...... it could be a lot more than £200.


I think the idea is once you have won you are no longer in the draw.
CoeK13/09/2019 16:55

I think the idea is once you have won you are no longer in the draw.


That's correct. Was wondering if there is any name to this.
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deleted1410297
This happens in Pakistani communities. They call it “committee” and every so often someone takes a few grand and does a runner. Not sure of the legal status but I have heard of people getting done for laundering in similar schemes.
Sounds a bit weird...and open to abuse
CoeK13/09/2019 16:55

I think the idea is once you have won you are no longer in the draw.



CoeK13/09/2019 16:55

I think the idea is once you have won you are no longer in the draw.


Ah... ok, I see
I hope the name selection is all above board and isn't influenced in any way
Why not just take your £20 or whatever and just put it in a piggy bank or separate account for saving rather than paying some game like this with it?
Doesn't really help save, It is encouraging gambling!
deleted141029713/09/2019 16:50

This happens in Pakistani communities. They call it “committee” and every s …This happens in Pakistani communities. They call it “committee” and every so often someone takes a few grand and does a runner. Not sure of the legal status but I have heard of people getting done for laundering in similar schemes.


Is there name in Uk
I know some of them in work do a "Tiddly" which sounds similar. Group all pay £20 per week then each week take turns in getting the "pot" of money.
Sounds like it falls into the 'private society lottery' category. As they are not distributing money to charitable causes then I think they fall into the needing to be registered camp.

Look at the gambling commision website at things like th rules for raffles/100 clubs.

We used to run a raffles for a charity and we had to register with the local council under the gambling act.
So 10 people ‘invest’ £200 a month, and you might not get picked at all if it’s ‘drawn from a hat’ ? How is that helping people save ?? Sounds more like taking advantage of them.
Think the op means 10 people save £200p/m in a year. Each month 1 person keeps all that money as advance payment but still continues to pay the remainder £200 for the months left . Bit like a loan
Babbabooey13/09/2019 20:43

So 10 people ‘invest’ £200 a month, and you might not get picked at all if …So 10 people ‘invest’ £200 a month, and you might not get picked at all if it’s ‘drawn from a hat’ ? How is that helping people save ?? Sounds more like taking advantage of them.


If I understand this correctly, everyone will get picked eventually because after you win you are no longer in the draw so the first month there are 10 people in it, the next month only 9 and so on until by the tenth month there is only one left, who is bound to win! No one gains and no-one loses, everybody eventually gets their money back.
Delbert.Grady13/09/2019 21:24

If I understand this correctly, everyone will get picked eventually …If I understand this correctly, everyone will get picked eventually because after you win you are no longer in the draw so the first month there are 10 people in it, the next month only 9 and so on until by the tenth month there is only one left, who is bound to win! No one gains and no-one loses, everybody eventually gets their money back.


Thats correct
Delbert.Grady13/09/2019 21:24

If I understand this correctly, everyone will get picked eventually …If I understand this correctly, everyone will get picked eventually because after you win you are no longer in the draw so the first month there are 10 people in it, the next month only 9 and so on until by the tenth month there is only one left, who is bound to win! No one gains and no-one loses, everybody eventually gets their money back.


Ah I see now
Delbert.Grady13/09/2019 21:24

If I understand this correctly, everyone will get picked eventually …If I understand this correctly, everyone will get picked eventually because after you win you are no longer in the draw so the first month there are 10 people in it, the next month only 9 and so on until by the tenth month there is only one left, who is bound to win! No one gains and no-one loses, everybody eventually gets their money back.


Theres also no laws stopping the first person that gets drawn out making no further payments, and the person running the scheme could conveniently get mugged one day just a daft idea, save your own money
CoeK13/09/2019 16:55

I think the idea is once you have won you are no longer in the draw.


That doesn't make sense because after 10 months no one can win.
There is literally no benefit in doing it as you may as well just keep the money yourself as you can't possibly win anything more then you put in. Hell even the pittance of interest you get at the minute is better then nothing.
The point is not winning but to get an advance of a lump sum for those who may need it and for those who don’t it’s a form of saving for when it ends.

Theres no losers from it other than those who take the money and do a runner but generally those whom are in it will only be in it with very close trusted friends/family.
Edited by: "samosa" 14th Sep
joedastudd13/09/2019 22:50

That doesn't make sense because after 10 months no one can win.There is …That doesn't make sense because after 10 months no one can win.There is literally no benefit in doing it as you may as well just keep the money yourself as you can't possibly win anything more then you put in. Hell even the pittance of interest you get at the minute is better then nothing.


Obviously once everyone is drawn it restarts. I'm sure they won't carry on doing it with 0 names in the draw.
.MUFC.13/09/2019 19:39

Doesn't really help save, It is encouraging gambling!


It isn't a gamble though.
Misslovely13/09/2019 21:18

Think the op means 10 people save £200p/m in a year. Each month 1 person …Think the op means 10 people save £200p/m in a year. Each month 1 person keeps all that money as advance payment but still continues to pay the remainder £200 for the months left . Bit like a loan


Yeh as confirmed in the 4th post. Apparently reading the thread is too much work for some.
In the black community it's called a pardner, in general though it's a pyramid scheme or ponzi scheme at best
jamaicans.com/5-t…ou/
regretful114/09/2019 18:11

In the black community it's called a pardner, in general though it's a …In the black community it's called a pardner, in general though it's a pyramid scheme or ponzi scheme at besthttps://jamaicans.com/5-things-jamaican-partner-pardner-draw-teaches-you/


It isn't like a pyramid or a ponzi scheme. How can it be when the same group of people stay involved and don't require new people to maintain it?
This is ideal for people who struggle to save. They pay a certain amount in every week and they know they won't get their lump sum if they don't keep up with the payments. They can take their lump sum out whenever they want but have to keep paying for the term (1 year, 1.5 years etc). People don't generally run away with the money because it's done by prominent members of the community and they tend to accept only those who they know very well. The only benefit I see from this is you can sometimes get access to the lump sum a lot sooner than you would when saving alone.

As I said ideal for those who struggle to save otherwise it's just as easy spending only where you need to and the rest automatically gets saved.
Perhaps you could all invest in my scheme exclusive to HUKD, called Madoff. Named after my pall Bernie that made huge gains for his community...
CoeK14/09/2019 22:52

It isn't like a pyramid or a ponzi scheme. How can it be when the same …It isn't like a pyramid or a ponzi scheme. How can it be when the same group of people stay involved and don't require new people to maintain it?



What happens when 1 person decides they have had enough or dies ?, it's a ponzi scheme I assure you.
Edited by: "regretful1" 18th Sep
regretful118/09/2019 15:52

What happens when 1 person decides they have had enough or dies ?, it's a …What happens when 1 person decides they have had enough or dies ?, it's a ponzi scheme I assure you.


It isn't. Ponzi schemes are illegal, this is not illegal.
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