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[BigGulp]

I just looked and I have $75 pending from this.

Thanks Trav!!!!

[traveler505]

I just noticed in my account history that Prosper is paying these fees to group leaders and they should be applied to account balances tomorrow morning.

Did the number of GL fee payments match the number of active loans on which you charged GL fees? 

My account is showing 8 payments pending, but I there are 10 open loans in my group.  I haven't had time to try to research the discrepancy yet.

Two more GL fee payments were credited today, so it looks like I now have all ten.

[traveler505]

Another fine mess Prosper seems to have gotten itself into.  Can they do nothing right?

After all of this, you'd think they could at least get the refunds right. 

Right? 

Interest paid on all refunds

Also, because Prosper was clearly in error the application of all of the above payments in question, and our error involves a time delay between when Prosper should have made payments to lenders, Prosper will pay interest at California’s legal rate of 7% on all amounts due to the affected lenders or GLs, from the date the payment should have been made. Interest will be paid in all 3 situations mentioned above.

As noted above, I received 8 refunds of improperly withheld GL rewards on February 28 and two more on March 5. 

Now that I've finally had a chance to take a close look at the refunds, it doesn't appear that Prosper paid interest as promised.

The review was complicated by the fact that the last monthly GL statement I received from Prosper was the one for June 2007.  Only one of the loans in my group was over three months old at that point, so I couldn't rely on the statement to determine the amount of accrued GL rewards which had been withheld for the others. 

So I went to each borrower's payment history (I was a lender on all of my group's loans), totalled the GL fees collected from my share of each payment made during the first three months of the loan, multiplied by the amount of the loan, and divided by the amount of my bid.  I then compared the result (which would be the total amount of GL fees collected by the borrower during the first three months) to the amount of the refund.  (This method only works for borrowers who made their third payment precisely on time.  Because the amount withheld was based on GL fees accrued during the first three months, not the GL fees actually collected, this method wouldn't work for borrowers who made the third payment early or late.)

For loans where this method didn't work, I totalled all of the GL fees collected from each payment made during the life of the loan (except pending payments), multiplied by the amount of the loan, and divided by the amount of my bid.  I compared this result (the total amount of GL fees collected during the life of the loan) to the total amount of GL fees paid to me over the duration of the loan (including the refund).

For each loan, the amount of GL fees collected from the borrower matches the amount paid to me.  That would mean that Prosper refunded the amount that was improperly withheld, but didn't pay interest, unless they hid it somewhere else in my account.  (I've looked, and I didn't find it.)

Could the other GLs who received refunds check their accounts and see if the same is true for them?

[ira01]

Another fine mess Prosper seems to have gotten itself into.  Can they do nothing right?

After all of this, you'd think they could at least get the refunds right. 

Right? 

* * *

For each loan, the amount of GL fees collected from the borrower matches the amount paid to me.  That would mean that Prosper refunded the amount that was improperly withheld, but didn't pay interest [as promised], unless they hid it somewhere else in my account.  (I've looked, and I didn't find it.)

I'm just shaking my head in amazement.  One would surely think that Prosper would have been careful to correctly ameliorate their past conversion of GL/lender funds -- did they really think that Traveler or someone else wouldn't notice if they didn't?     I would say "just unbelievable," but unfortunately it is all too believable.    Traveler, did you check to see if interest was paid on the other misappropriated amounts (especially the improper collection of servicing fees from lenders on loans in collections)?

And where's mhs505 to tell us how this must simply have been a Prosper "oversight" and how some of us are just so quick to jump on Prosper's case when these things happen? 

[traveler505]

Traveler, did you check to see if interest was paid on the other misappropriated amounts (especially the improper collection of servicing fees from lenders on loans in collections)?

I think interest was paid on those, but I'll go back and take another look.  The servicing fees refunded to me were small enough, IIRC, that the interest would have been fractions of a cent.

I didn't have any GL fees assessed on late payments, so someone else would have to investigate whether interest was paid on those.

[sophtommy00]

The payments I received as a result of this correction contained no interest allowance from Prosper.

[traveler505]

It appears that the interest on withheld GL rewards was credited to my account today.

[Mtnchick]

It appears that the interest on withheld GL rewards was credited to my account today.

At least we know they read the lobby

[xraider]

With anton and witchel bidding on eandr, I'd say this is just independent confirmation!

[traveler505]

http://blog.prosper.com/2008/03/27/completion-of-refunds-to-lenders-and-group-leaders/

[sophtommy00]

It appears that the interest on withheld GL rewards was credited to my account today.

Likewise...thanks again, Trav.