Collection fees on loans paid in full

[Mtnchick]

Thanks to joet222 for pointing this out:

Has anyone seen a loan that went into collections and the borrower decided to payoff the whole thing? Check out

http://www.prosper.com/invest/listing.aspx?listingID=337969
Loan ID 32163

So it seems that the collection agency gets the 17% windfall, if they are lucky enough to collect one of these. Or will 17% only be deducted from the amount needed to cure the account and bring it current. I'm torn between seeing a loan go bad and losing 17% on what eventually turned out to be a decent loan afterall.

Modified by HollowOak: Removed erroneous modification.

[ira01]

Modified by HollowOak: I am not sure that the original author cared to be identified in the Lobby. To protect his privacy, I'm removing his name and linking to the thread he started. Copying a post verbatim from Verified goes against the spirit of confidentiality.

The original author agreed that the verified thread should be moved to the Lobby, and asked if anyone knew how to do that.  So it sure seems to me like he didn't mind being identified. 

[mothandrust]

JammingJay I think pointed out a 4+ late loan that Prosper collected a 17% collections payment for itself, so if they can collect 17% on the entire principal balance paid, this will provide them with a huge amount of revenue.

Prosper 2.0 or 3.0 or future versions are unsustainable business models if the incentives are such that Prosper (or its business partners like AmSher and CPS) make profits when lenders lose their shirts.

[ira01]

JammingJay I think pointed out a 4+ late loan that Prosper collected a 17% collections payment for itself, so if they can collect 17% on the entire principal balance paid, this will provide them with a huge amount of revenue.

IIRC, nothing in the Lenders' Agreement authorizes Prosper to keep 1 cent of the collections fee.  If Prosper is doing so (and I am not saying that it is), someone should ask the California AG to investigate Prosper for possible embezzlement.

[JammingJAY]

JammingJay I think pointed out a 4+ late loan that Prosper collected a 17% collections payment for itself, so if they can collect 17% on the entire principal balance paid, this will provide them with a huge amount of revenue.

Prosper 2.0 or 3.0 or future versions are unsustainable business models if the incentives are such that Prosper (or its business partners like AmSher and CPS) make profits when lenders lose their shirts.

Yes it is was this loan.

http://www.prosper.com/invest/listing.aspx?listingID=130718

Last payment Mar. 4th. He was making double payments until the loan went "charge off" I don't understand this because the 4 months he made payments every two weeks should have brought him almost current.

He made more payments afterward, I was hit with a collection fee on these.

I'd like to thank Prosper but now I don't know how. You see with the new prosper the records are gone.
Yup gone. I just looked, under 2.0 the only fee is when he went <1 late 09/07! The fee fields are now" - ".

Thanks prosper, I see you are getting desperate enough to buy your way into hell with nickels.

 

[Mtnchick]

I'd like to thank Prosper but now I don't know how. You see with the new prosper the records are gone.
Yup gone. I just looked, under 2.0 the only fee is when he went <1 late 09/07! The fee fields are now" - ".

Thanks prosper, I see you are getting desperate enough to buy your way into hell with nickels.

"Transparency" means "You can't see it at all" in Prosperland.

[joet222]

Score one for "Stopped Clocks Are Right Twice A Day" category.

It looks like Propser's collection fees on the loan in question ceased at a percentage of the amount needed to cure the account. I can be fair when it's warranted, I figured based on my other boneheaded and fraudlent things that Prosper is doing I'd lose a portion of the whole PIF amount.

Good job Propser (and collectors) for once. :-)

[mothandrust]

JammingJay I think pointed out a 4+ late loan that Prosper collected a 17% collections payment for itself, so if they can collect 17% on the entire principal balance paid, this will provide them with a huge amount of revenue.

Prosper 2.0 or 3.0 or future versions are unsustainable business models if the incentives are such that Prosper (or its business partners like AmSher and CPS) make profits when lenders lose their shirts.

Yes it is was this loan.

http://www.prosper.com/invest/listing.aspx?listingID=130718

Last payment Mar. 4th. He was making double payments until the loan went "charge off" I don't understand this because the 4 months he made payments every two weeks should have brought him almost current.

He made more payments afterward, I was hit with a collection fee on these.

I'd like to thank Prosper but now I don't know how. You see with the new prosper the records are gone.
Yup gone. I just looked, under 2.0 the only fee is when he went <1 late 09/07! The fee fields are now" - ".

Thanks prosper, I see you are getting desperate enough to buy your way into hell with nickels.

Didn't they promise that none of our information would be lost or deleted?