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[Fred93]

The most recent Prosper "fees" web page
http://www.prosper.com/welcome/fees.aspx

says this:

1% Electronic funds transfer discount

Borrowers who elect to pay their loans through electronic funds transfer will receive a discount of 1.00% from the interest rate on loans to borrowers who do not agree to electronic payments. Borrowers who choose bank drafts will not receive the 1.00% discount.

This isn't a discount!  What were they smokin' when they wrote that?  This is an added fee for those who refuse to allow electronic transfers.

[onthefence]

True.  Prosper would need to increase & properly advertise their base fee rate in order to claim a discount.

[yankeefan]

This from the first promissory note I "bought' from Prosper

a. The interest rate set forth in this Note, and the Annual Percentage Rate and related disclosures set forth in my Truth-in-Lending Disclosure Statement include the one-quarter percent (0.25%) reduction in my interest rate (the "Preferred Rate") that I received as an incentive to make my payments by preauthorized automatic withdrawals

I don't see this provision in the two most recent notes I have.

[ira01]

The most recent Prosper "fees" web page
http://www.prosper.com/welcome/fees.aspx

says this:

1% Electronic funds transfer discount

Borrowers who elect to pay their loans through electronic funds transfer will receive a discount of 1.00% from the interest rate on loans to borrowers who do not agree to electronic payments. Borrowers who choose bank drafts will not receive the 1.00% discount.

This isn't a discount!  What were they smokin' when they wrote that?  This is an added fee for those who refuse to allow electronic transfers.

IIRC, Prosper changed the way they described the former 1% fee for the bank draft option about 6 months ago or so.  If I had to guess, I would say that Prosper determined that since it is not legally permissible to require ACH transactions, it is also not permissible to charge a fee to borrowers not agreeing to ACH transactions.  So they reworded it to provide a "discount" for those "vuluntarily" electing ACH.  Kind of like how merchants are prohibited from charging a fee for customers to use credit cards, but are allowed to give cash discounts.  Just a shell game, IMHO, but that's how it works. 

[Mtnchick]

There must be a required course at Sanford for "Double Speak".

[Cushie]

The most recent Prosper "fees" web page
http://www.prosper.com/welcome/fees.aspx

says this:

1% Electronic funds transfer discount

Borrowers who elect to pay their loans through electronic funds transfer will receive a discount of 1.00% from the interest rate on loans to borrowers who do not agree to electronic payments. Borrowers who choose bank drafts will not receive the 1.00% discount.

This isn't a discount!  What were they smokin' when they wrote that?  This is an added fee for those who refuse to allow electronic transfers.

So my rate is 9.7 instead of 10.7???  HUH?