My Prosper.com experience

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?

Last week i sent off emails to all the PMI owners,& mucketymucks asking for clarification of the lender agreement & wanting to know just who exactly owns the prosper loans.

Well i didn't get a reply so i filled out a SEC complaint form here http://www.sec.gov/complaint/selectconduct.shtml

for Fraudulent or unregistered offer or sale of securities

I believe PMI may be selling us unregistered securities as expalined in my previous blog post.Thank you PMI for ignoring my numerous emails seeking clarification.You pushed me to the point of registering this complaint.I encourage anyone else who thinks they may have bought unregistered securities to log a complaint. 

After lendingclub being shut down i did a little digging here http://straylight.law.cornell.edu/uscode/html/uscode15/usc_sup_01_15_10_2A_20_I.html

I am considering sending a registered letter requesting PMI to repurchase all the unregistered securities they sold me.After reading a few laws,i believe they sold me illegal securities.I am not a lawyer,but i do plan to consult one.

 I also wouldn't be suprised to see PMI shut down or be shut down soon.Lend with Caution!!!

http://straylight.law.cornell.edu/uscode/html/uscode15/usc_sec_15_00000077---b000-.html

The term “security” means any note, stock,
treasury stock, security future, bond, debenture, evidence of
indebtedness, certificate of interest or participation in any
profit-sharing agreement, collateral-trust certificate, preorganization
certificate or subscription, transferable share, investment contract,
voting-trust certificate, certificate of deposit for a security,
fractional undivided interest in oil, gas, or other mineral rights, any
put, call, straddle, option, or privilege on any security, certificate
of deposit, or group or index of securities (including any interest
therein or based on the value thereof), or any put, call, straddle,
option, or privilege entered into on a national securities exchange
relating to foreign currency, or, in general, any interest or
instrument commonly known as a “security”, or any certificate of
interest or participation in, temporary or interim certificate for,
receipt for, guarantee of, or warrant or right to subscribe to or
purchase, any of the foregoing.

http://www.prosper.com/lend/listing.aspx?listingID=191831

B credit.Made 5 payments.Thanks Prosper for keeping all the tools to allow us to see the total Scorex away from us so we can't see borrowers who are on the way to bankruptcy.

Prosper banned me for my outspoken ways & attempts to educate new lenders. For all you new lenders out there

The most valuable lending tool available is read

http://www.prospers.org/

I lost $1100 minus 5 payments on this loan.My plan was to bid $1000 on 100 loans on Prosper but I noticed so many scoring flaws like borrowers in their budget listing thousands of dollars of credit card debt that the data Prosper was showing us didn't even have listed.Homeownership icon is a joke.That actually hurts borrowers chances of repaying.

 I'd also like to comment about the guy on the Prosper blog who values all of his lates at 100% of value when figuring his ROI.This loan is at 1 month late & using his model,he would say it is worth 100% of outstanding principle.I'm offering right now,right here to sell it to him for 15% of the outstanding amount owed to me.Hell let's just call it $100 even.Wanna buy it?

April fools jokes are kinda tough for someone like me to pull off,but this year we got the whole family.My wife is 35 & i'm 34 & we have no kids nor plan on any.My wife has a very eccentric uncle who lives alone & is a HUGE gossip.This morning my wife called him & after a few minutes she said "Uncle Bill,can you keep a secret" She then proceeded to tell him she was 6 weeks pregnant & DO NOT TELL MOMMA YET! We left to check on some stores,& were caught up at a store in an area with no cell service for almost 2 hours.Needless to say Bill,called his sister,who then called my parents.My cell had 5 messages on it.The home line had 3.