iBill Announces 'Discounted Rate' Debt Conversion Plan
iBill is a provider of turnkey ecommerce solutions for small and large businesses around the world, providing secure transaction services that enable merchants to accept and process realtime payments for goods and services purchased over the Internet.
Founded in 1997, sold by 2002, and insolvent by 2007, iBill Fla. processed payments mainly in the adult entertainment arena, from which 99 percent of the unpaid claims spring. With estimated outstanding claims in the millions, IBill Fla. became defunct in 2007, and in 2008 iBill, Colo., registered the lapsed trademarks, and purchased the relevant Internet domain.
According to the new iBill, though no association exists between the two companies, with none of the same employees, or owners, as iBill 2002-2007, and despite the fact that iBill Colo. holds no legal or ethical responsibility to any merchants from iBill 2002-2007, "out of an abundant sense of fairness, and to show understanding to those that have been deprived of income from the previous owners," the board of directors at iBill, Colo., late Saturday night determined to honor the outstanding debts of the previous owners, in an effort to show good faith and build brand equity.
Jonas Brown, President and CEO, with no association with iBill, Fla. (2002-2007), has taken over the new and improved iBill — with plans for an expanded website, greater marketing efforts and the drive and knowledge needed to rebuild the good name of this once prestigious company.
Those with outstanding claims will be able to apply to iBill, Colo., with proof of debt owed; such as a promissory note, name on lawsuit or other documentation as determined by iBill, Colo., for relief. This program will begin on April 7, 2010, and be processed through www.iBill.net. iBill Colo. does not assume the debt of iBill Fla. (2002-2007) nor will merchants be obliged to release iBill Fla. (2002-2007) from their legal obligations under the terms of any contract signed with iBill Fla. (2002-2007).
Brown told XBIZ that relief for the outstanding debts will come in the form of discounts on payment processing until creditors have recouped the outstanding amount owed by iBill Fla., (2002-2007). With the standard rate for payment processing set at 14.5 percent of all transactions, creditors will be able to negotiate a lower rate, with rates as low as 4.5 percent, that will run until the debt is settled. The difference between the traditional rate and the debt conversion rate will represent the amount that will be applied to the debt.
For example, if a person or business entity processes $10,000 in transactions each month, and their normal fees would be $1450, and that person or entity is paying a promotional rate of five percent, the remaining $950 will be applied to the outstanding debt.
"We are excited to be working with these former merchants of iBill Fla. (2002-2007), and hope that we will be able to restore their faith in our new and improved company," Brown said. "While merchants are not required to sign any contract or term agreement with iBill, we look forward to them becoming long term merchants and business partners."
"As we are not required to do this, and are doing it out of a desire to help those who have been hit a loss in these tough economic times, some skeptics are sure to be disbelievers," Brown concluded. "However, we are certain that we will be able to change their minds as time goes on and they see the commitment that we have made to growing the business, and building back the brand name."
iBill plans to launch version 2.0 of its processing platform on April 7.