Countless arguments can be made (and have been by many) for both sides of the discussion. The way I look at it is that people consider it a scam because it's so lucrative (compared to just about anything mainstream) but as has been said, people are programmed to believe that this type of return isn't possible (it is, but the banks keep that information hush hush).

At the end of the day though, until they stop paying their bills or get shut down by a government for doing something deemed as illegal, they're a legitimate business. I don't use the referral program and am getting returns on an investment I put in as an experiment, so this news doesn't affect me either.

I personally look at any investment I make in their lending program as money I'm probably not getting back, but am really starting to appreciate the money as it breaks the ROI barrier.