Cowrica Frequently Asked Questions (FAQ)

FAQs

What is Cowrica?

The name was derived from cowries, the universal currency in premodial societies.

What is a cooperative business? https://www.peoples-law.org/basics-forming-and-maintaining-cooperatives-maryland#taxation

How do you meet?

We meet online once a month. Special meetings could also be called anytime.

What are the qualifications for membership?

• You must be a resident of the United States, Canada or Mexico.

• You must be at least 18 years old.

• You must have a job/or be self-employed.

• You must pay the refundable $200 for your minimum membership interest (equity) of the cooperative.

• You can join or exit anytime.

In this a pyramid or Ponzi scheme?

NO. A pyramid scheme is an arrangement where your success depends on the number of people you recruit into an organization. It could also be combined with a ponzi scheme.

A Ponzi scheme is where money is collected from some people and paid to others on and on. They usually promise unrealistic profit/returns within a very short period of time. They can say invest $5, 000 and in 3 months you get 5, 000 every 3 months or something impossible to produce in a normal economic environment. Greedy people always fall into the hands of these schemers.

Cowrica is not a pyramid scheme because your success depends basically on your participation. You only get the money you saved/invested with interest. It is neither a Ponzi scheme because you only get what you invest with interest and not more.

We cannot make promises of any special returns but we can promise you all these benefits are real. See membership tab for the benefits.

Is there a monthly fee?

No. However, we encourage members to increase their equityholdings/membership units by at least one every month. This is not mandatory but encourged.

What is the legal arrangement of Cowrica?

Cowrica is a cooperative, an organization established to be jointly owned by all members who also share its profits and benefits from its services.

However, Cowrica is registered as a Limited Liability Company (LLC) in the state of Maryland.

Your $200 registration/membership fee will go towards your ownership in the business and is refundable upon cessation of membership with interest where applicable.

What is Ajo/Esusu?

This is an African cultural way of saving money. Individuals pool their money together for a period of time and each takes turn to get his/her equal share of the amount contributed, thereby helping people save towards projects.

Market women set aside a sum of money each day or weekly and put into Ajo/Esusu. They get their money back at the end of the set period, usually six months or a year. However because banking license is required to accept deposits from the public, we have made the Ajo/Esusu a form of loan with repayments spread over the Esusu period.

However, you can decide to get the contributed amount at the end of the Ajo/Esusu period.

Example, after your first participaton in the Ajo/Esusu, you decided to contribute $553 bi-weekly for 6 months. This will amount to $7, 189.48. This amount will be given to you on the first month of the Ajo/Esusu period minus 189.48 which is the interest. Therefore you will have $7000 which you will pay back for 6 months, at the rate of $553 bi- weekly.

If you are doing more than one hand of Ajo/Esusu, the first will be paid out the first month and the rest on the last month of the Ajo/Esusu period.

Are your loans available to non members? No. All activities are strictly for members only.

What happens if one needs to get his Ajo/Esusu before the collection time?

First timers get their Ajo/Esusu at the end of the contribution period. After this, you will get the payment the very first month of the Esusu period less 10% APR. See the example above.

Loan Repayment

Every member is encouraged to pay off their loans as scheduled. Should you risk defaulting, we will give you as much time as you need. However, outright defaulter who refuse to work with us will be sued for the sum owned. Their membership interests will be used to satisfy the debt and they will be removed as members.

Defaulters will never be reported to the credit Bureaus.

What are the interest Rates?

For business or personal loans, including for the Ajo/Esusu, the interest will be 10% monthly APR.

For Real Estate related loans, the Interest will be 5% monthly APR.

For car loans and refinance, the interest will be 6% monthly APR.

The board or the members can vote to alter these rates at any time.