In 2014, startup Plastc announced its plans to launch its all-in-one credit card. Thousands of people placed a pre-order to get access once the card launched.
But on April 20, 2017, Plastc announced that the company was shutting down operations and would not fulfill the orders that customers placed, leaving them in a bind.
Find out why the business is shutting down and what consumers can do to recoup their losses.
What is Plastc?
Plastc was a startup that set out to create an all-in-one smart card. The card would combine all of your debit and credit cards in one place. Instead of carrying around a wallet full of different credit cards, you would just need the Plastc card.
The idea was hugely appealing to consumers. Companies like Plastc billed a smart card as a more secure option than traditional cards because there would be no visible account number on the physical card. The card would also be password-protected, preventing thieves from stealing your information or making fraudulent purchases.
Because of those benefits, many people were willing to part with their hard-earned money to bring Plastc to life. Over 80,000 people pre-ordered a Plastc card, raising over $9 million for the company.
Plastc now shutting down operations
Despite its popularity, Plastc announced a sudden decision to close the company and let go all of its staff.
In a message on its site, Plastc said the closure was due to a lack of investor funding.
After making enormous leaps in development, product innovation and progress towards our goal, Plastc has exhausted all of its options to raise the money it needs to continue. Plastc, Inc. is exploring options to file Chapter 7 Bankruptcy and will cease operations on April 20, 2017.
Thousands of people who spent their money to pre-order the Plastc card now face a financial loss. Since the company is filing for bankruptcy, customers will not get any refund.
What Plastc customers can do
Many customers have taken to social media to vent their frustration and get some answers about their money. But because Plastc’s staff is gone and their social media accounts are shut down, consumers are unlike to get answers.
A class action lawsuit is possible, which would help customers get their money back. But such lawsuits can sometimes take months or even years — and you still might not get a refund.
However, there may be other options. If you paid for your pre-order with either a credit card or PayPal, you might be able to dispute the charges and get the money back that way. Because you placed the order with the idea that you would get the card someday, the fact that you didn’t get it could entitle you to a refund through your payment method.
Plastc smart card alternatives
Plastc was not the only company trying to come up with an all-in-one card. While there are several that are adding customers to a waitlist, few have the technology perfected enough to launch.
One of the few options out there is Wocket. For $179, you can get a card that syncs all of your credit cards, debit cards, gift cards, and loyalty or membership cards.
The dangers of early pre-orders
While some people may be able to recoup at least some of their money, many others will not. That’s a big danger with startups accepting pre-orders for a product they haven’t successfully created yet and for crowdfunding an idea.
Before placing an order or investing your money in a great idea, make sure the amount is money you can comfortably lose. If you need that money to pay bills or pay down debt, investing in a startup is probably too dangerous a gamble for you to take.
Interested in a personal loan?Here are the top personal loan lenders of 2019!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Opploans.
Direct Deposit required for payroll.
Opploans currently operates in these states: . *Approval may take longer if additional verification documents are requested. Not all loan requests are approved. Approval and loan terms vary based on credit determination and state law. Applications processed and approved before 7:30 p.m. ET Monday-Friday are typically funded the next business day.
3 Includes AutoPay discount. Important Disclosures for Payoff.
4 Important Disclosures for FreedomPlus.
5 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
6 Important Disclosures for LendingPoint.
7 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.95% to 35.89%*. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: LendingClub, 71 Stevenson Street, Suite 1000, San Francisco, CA 94105.
†Per reviews collected and authenticated by Bazaarvoice in compliance with the Bazaarvoice Authentication Requirements, supported by anti-fraud technology and human analysis. All reviews can be reviewed at reviews.lendingclub.com
**Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between January 1, 2018 to July 20,2018. The time it will take to fund your loan may vary.
8 Important Disclosures for Earnest.
9 Important Disclosures for Avant.
*If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.
**Example: A $5,900 loan with an administration fee of 4.75% and an amount financed of $5,619.75, repayable in 36 monthly installments, with an APR of 29.95% would have monthly payments of $250.30.
Based on the responses from 11,574 customers in a survey of 210,584 newly funded customers, conducted from 1 Feb 2018 – 1 Aug 2019 95.05% of customers stated that they were either extremely satisfied or satisfied with Avant. 4/5 Customers would recommend us. Avant branded credit products are issued by WebBank, member FDIC.
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
* Personal loans made through Upgrade feature APRs of 6.98%-35.89%. All personal loans have a 1.5% to 6% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by WebBank, Member FDIC.
** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.
|5.99% – 17.88%1||$5,000 - $100,000|
|5.69% – 35.99%||$1,000 - $50,000|
|6.98% – 35.89%*||$1,000 - $50,000|
|99.00% – 199.00%2||$500 - $4,000|
|5.99% – 24.99%3||$5,000 - $35,000|
|5.99% – 29.99%4||$7,500 - $40,000|
|6.79% – 20.89%5||$5,000 - $50,000|
|15.49% – 35.99%6||$2,000 - $25,000|
|6.95% – 35.89%7||$1,000 - $40,000|
|5.99% – 17.24%8||$5,000 - $75,000|
|9.95% – 35.99%9||$2,000 - $35,000|