no more lenders from Pennsylvania

[Fred93]

Appeared in Prosper Blog...

Important Notice for Lenders Residing in Pennsylvania
09/15/08 posted by Prosper Blog

We have made the decision to discontinue accepting new lender registrations, and new bids from existing lenders, from residents of the Commonwealth of Pennsylvania. Our decision to make this change was based on our ongoing discussions with regulators in Pennsylvania, which led us to believe the change was necessary to comply with their current interpretation of their state regulations.

[msava]

The lucky devils.

[kingnod]

Yeah they sent an email out to all lenders from PA with the same statement.

[GLeaderAccountantsChoice]

poof

[GLeaderAccountantsChoice]

I bet that LendingClub doesn't have this issue.  Last time I heard, people were able to buy "securities" in all 50 states...

[Navy-slush-fund]

need a hammer and sickle on the state flag.....next thing you know they will be telling me what kind of beer I have to drink....frigging communists and thier Gov't. controls...

[Shenandoah]

I bet that LendingClub doesn't have this issue.  Last time I heard, people were able to buy "securities" in all 50 states...

LendingClub doesn't allow lenders in any state right now.

[Xenon481]

If Prosper.com has been running afoul of Pennsylvania regulations this whole time (or at any time), then all affected notes sold to Pennsylvania lenders should be repurchased at full remaining face value (Principal + Accrued Interest) by Prosper.com immediately.

[112233]

ok, so you live in PA and want a prosper loan eh? looking at the rates, you see that your state cap is a very small 5%. your realize that your best hope is to borrow from someone you know. that shouldnt be a problem, because at Prosper, we make borrowing from friends and family worry free. awesome! call your mom and dad down the street and your highschool friend in the next town and tell them you are looking for a loan at prosper. explain to them that prosper is geared towards family and friends and they will make the whole thing worry free.

hold on a second though .. prosper doesnt let people from pennsylvania lend money.

oh well, so much for that idea. I guess it's back to joining 2mils group.

[Urbi_et_Orbi]

If Prosper.com has been running afoul of Pennsylvania regulations this whole time (or at any time), then all affected notes sold to Pennsylvania lenders should be repurchased at full remaining face value (Principal + Accrued Interest) by Prosper.com immediately.

Considering the steps Prosper has taken in recent months to slow down their burn rate, I think it's unlikely that we will see Prosper re-purchase much of anything, ID theft loans included, IMHO.

[God-Father]

If Prosper.com has been running afoul of Pennsylvania regulations this whole time (or at any time), then all affected notes sold to Pennsylvania lenders should be repurchased at full remaining face value (Principal + Accrued Interest) by Prosper.com immediately.

Where did you see that guarantee?

[GLeaderAccountantsChoice]

If Prosper.com has been running afoul of Pennsylvania regulations this whole time (or at any time), then all affected notes sold to Pennsylvania lenders should be repurchased at full remaining face value (Principal + Accrued Interest) by Prosper.com immediately.

Where did you see that guarantee?

...or law / legal interpretation?

[ira01]

There was an earlier thread on this -- http://www.prospers.org/forum/important_news_for_pennsylvania_lenders-t9429.0.html.  As I stated there:

Very interesting.  I think this strongly suggests that Prosper was lying when it blamed its same decision regarding South Dakota lenders on the fact the since Prosper couldn't have South Dakota borrowers, it made a business decision that it wasn't worth it to deal with the compliance issues for SD lenders.  To me, this shows that states are taking a look at Prosper and saying "no thank you" -- perhaps due to Prosper's various shortcommings that we all know well. 

http://www.prospers.org/forum/any_ideas_why_prosper_recently_stopped_allowing_lenders_from_south_dakota-t9177.0.html

[Xenon481]

If Prosper.com has been running afoul of Pennsylvania regulations this whole time (or at any time), then all affected notes sold to Pennsylvania lenders should be repurchased at full remaining face value (Principal + Accrued Interest) by Prosper.com immediately.

Where did you see that guarantee?

...or law / legal interpretation?

If they illegally sold Pennsylvania "lenders" loans/notes while representing the transaction to be fully legal, then they should be obligated to correct the transaction.

[christoofar215]

If Prosper.com has been running afoul of Pennsylvania regulations this whole time (or at any time), then all affected notes sold to Pennsylvania lenders should be repurchased at full remaining face value (Principal + Accrued Interest) by Prosper.com immediately.

Apparently Prosper is running afoul of Pennsylvania securities law, but not the lending law.   That's the only explanation as to why Pennsylvania residents can continue to borrow why lenders cannot lend.