zcommodore

If you need any more evidence that Prosper does NOT have your best interests in mind if you're a lender, you need go no further than this loan.  It has "Nigerian Lottery Scam" written all over it.  The borrower was either a sucker or, more likely, a victim of ID theft.  A little over a week ago, Prosper repurchased this loan as you can see here on Ericscc.com.  So, in the end, Prosper made the lenders whole.  Still, they should never have originated the loan in the first place.

I did a bit of searching on the old archived forums at prosperreport.com and here on prospers.org and found numerous mentions of this loan.  Several lenders indicated they had reported the listing prior to it's end so there is plenty of evidence Prosper was warned.  Yet they let it pass anyway.  Now they're stuck paying most of the $10,000 originally borrowed back to the lenders and they've lost most of the money.

How many other times has Prosper been warned about loans that they've let go through that turned out to be fraud and the lenders lost money?  I don't know but let this example be a warning.  I don't believe Prosper really has lender's best interests in mind and I have no reason to believe they've changed anything in the last year since that loan first went through.  Prosper's interest seems more along the lines of, if lender's bid on it, it's their problem.