09-11-2009, 07:20 AM
email announcement Wrote:September 10, 2009 Dear xxxx ,
Most of the people who have won auctions on the Bid4Assets' website have followed the Terms of Service that they agreed to when they registered.
A small number of bidders have won auctions and not completed their transaction
( "Non-Performing Bidders"). Non-performance is harmful to the majority of our bidders who follow the rules and it is also harmful to our sellers. The problem is significant enough that we must do something about it.
Beginning Wednesday, September 16th at 12:01am, we will be making a slight change to the way bidding happens and we will be modifying our "Non-Performing Bidder" policy.
[left][/left] To ensure a valid card, funds will be placed on "hold" for EACH auction on which you bid. Think of this "hold" as similar to a refundable deposit. The hold amount will be equal to the "Penalty for Non-Performance". Your card will not be charged unless you win an auction and do not perform.
- Credit card or debit card: Starting Wednesday, September 16th at 12:01am, when you prepare to place a bid on an auction not requiring a deposit, even if you have bid on that auction prior to September 16th, you will be asked to provide us with a credit card or debit card number that we will keep on file.
The "hold" on your card will be in place typically for 5-7 business days from the time the bid is placed, depending on your credit or debit card company's "hold" policy (It could be shorter or longer). Bidders will only be charged when they win an auction and do not perform.
Also, be aware that the funds on "hold" will be "frozen" typically for 5-7 business days, and will not be available for withdrawal. You must be familiar with your bank's policy and plan for these funds to be unavailable. Bid4Assets will not be responsible for "insufficient fund" fees.
We want to assure you that we have taken the care and time to ensure that our system is encrypted to protect your personal information.
- "Penalty for Non-Performance": If a bidder wins an auction and fails to complete the transaction, and the seller has lived up to the terms displayed in their auction, the bidder's card will be charged $250 for non-performance on a real estate auction and $100 for all other auction categories.
- Suspension: Bidders who do not perform will also be suspended from bidding or selling for 60 days and must seek reinstatement in writing. The 60 day suspension will begin when a written request is received. Bidders who do not perform a second time will be suspended permanently.
We hope you understand why we have to strengthen our policies. The majority of our bidders are serious, live up to their commitments, and won't be affected by this policy. This action will also help prevent frivolous bidding that drives up the price of an auction.
Protecting our sellers and buyers is another way that we can help everyone accomplish their investment goals.