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Did you think you owned your Prosper Marketplace Inc. loans?

Did you think you owned your Prosper Marketplace Inc. loans?

Think again !

The Notes are promissory
notes representing three-to-five-year, unsecured, fully-amortizing credit
obligations of individual borrowers. If and when a borrower listing placed on
the Platform is matched with a bid in, or multiple bids totaling, the amount of
a requested borrower loan, Prosper makes the loan to the borrower and evidences
the borrower’s obligation by separate Notes in the amount of each individual
winning bid. Each Note is thereafter sold and assigned by Prosper to each
respective winning bidder (referred to on the Platform as a “lender”) without
recourse to Prosper.

Per the SEC filing in Oct 2007

http://www.sec.gov/Archives/edgar/data/1416265/000110465907078072/a07-27421_1s1.htm

This is the only filing for PMI on the SEC website,so they are not registered to sell these notes to us.Is that legal?

This entry was posted on April 10th, 2008 at 03:01:28 pm and is filed under General.

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2 comments

Comment from: bmay2 [Member] Email
Prosper said all along the lenders did not own the loans. That is why lenders had no recourse in the collection process.

That was filed in Late 07, plenty of time for the Sec to go over the documents. any red flags they would have never let Prosper continue to take money from the public. The Sec is in place to protect the public.
04/10/08 @ 22:15
Comment from: bamalucky [Member]
My loans were mostly made before they filed..I bought unregistered notes from PMI
04/11/08 @ 08:30

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