Legal Question in Credit and Debt Law in North Carolina

I was recruited to join a MLM company a couple of months ago. At the time I did not have the money to pay or the means to get a loan to pay for the inventory that the recruitor needed me start with. She purchased the inventory for me using her credit card and had me sign a contract she typed up that had blank amounts and a blank date to pay her back. Like a fool I signed it. I realized that this was a skam and returned the inventory for a 90% by back refund. The contract she had me sign is not notorized and it was against the company policy for her to purchase inventory for a recruit what are my legal options.


Asked on 8/03/10, 5:02 pm

1 Answer from Attorneys
Rachel Hunter

You need to read the contract that you signed with her. If you received a refund, then you need to reimburse her for that so she can pay her credit card bill. You may need to pay the remaining 10% from your own funds.

I cannot comment on whether this is a scam or not as I have not seen any of the documents. If this company does sell real products (as opposed to relying on you bringing in other clients into the program) then it is legitimate. If they make money by having you bring in new people, then it is an illegal Ponzi scheme and is indeed a scam.

I agree that you made an unwise choice, but I don't see why she should be responsible for your bad choices.

Notarization on a contract is not required to make it valid. Notarization just reduces problems of proof.

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Answered on 8/17/10, 12:33 pm


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