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[msava]

- Borrowers now have a legal out to stop paying their notes.

No.  Nothing in the SEC order affects prosper's borrowers at all.

it's not exactly clear how 300 lenders are going to sue a single borrower who took the transaction through an intermediary.

In the case of the 66 "legal test" loans, prosper bought them back (for zero$ + contingency), to remove this legal uncertainty, then sued.  Unfortunately, they've lost most of those cases even without the problem you describe!  In many cases they never even managed to find the borrower to serve 'em the paperwork.  In  many other cases Prosper dropped the case with no explanation to us whatsoever.  The legal test has had a horrible result.  Prosper has decided to not tell us anything about how this played out.  My guess is that it is their own failure.

What criteria did Prosper use to pick the 66 test cases? One would think they would have at least picked people they could find

[Urbi_et_Orbi]

What criteria did Prosper use to pick the 66 test cases? One would think they would have at least picked people they could find

They were California loans and loans that Sheriff DoFu had hand-picked as particularly winnable, so he could establish a strong legal precedent.

Pfftt.

[beerbud1]

What criteria did Prosper use to pick the 66 test cases? One would think they would have at least picked people they could find

They were California loans and loans that Sheriff DoFu had hand-picked as particularly winnable, so he could establish a strong legal precedent.

Pfftt.

Yup They were hand picked By MR EXPERIENCE ;
My 10 year old could have done a better job.

[tmullin1217]

What criteria did Prosper use to pick the 66 test cases? One would think they would have at least picked people they could find

They were California loans and loans that Sheriff DoFu had hand-picked as particularly winnable, so he could establish a strong legal precedent.

Pfftt.

Yup They were hand picked By MR EXPERIENCE ;
My 10 year old could have done a better job.

Did your kid pick your loans as well? ($20K+ default, $12K+ late)

Or were you drunk when you made your picks? You should lay off the beer.

And lay off the bud as well... 

[beerbud1]

What criteria did Prosper use to pick the 66 test cases? One would think they would have at least picked people they could find

They were California loans and loans that Sheriff DoFu had hand-picked as particularly winnable, so he could establish a strong legal precedent.

Pfftt.

Yup They were hand picked By MR EXPERIENCE ;
My 10 year old could have done a better job.

Did your kid pick your loans as well? ($20K+ default, $12K+ late)

Or were you drunk when you made your picks? You should lay off the beer.

And lay off the bud as well... 

Hey Tmullin1217, Your just like abcdefg. Too bad you don't identify your real screename, Or are you a prosper coward.
Are you one of those cowards who defends prosper employees when they never return e-mails, and were okay that dishonest borrowers were stealing lenders funds. why don't you identify yourself so we know who you are. whats a matter. What are you hiding behind. Mind your own business. You don't know what I consume, when I consume or how much. Better yet why don't you private message me? Stop hiding behind a secret identity.

[bamalucky]

tmullin is billquality

[Mtnchick]

I'm pretty sure BeerBud didn't hold himself out as an expert....especially an expert who's only lost one collections case and fired the lawyer on the lost one. Doug Fuller, however, acted like suing people and winning was what he did best. If that's the case, I'd hate to see how badly he does anything else.

Modified to change to full name for Google effect

[beerbud1]

I'm pretty sure BeerBud didn't hold himself out as an expert....especially an expert who's only lost one collections case and fired the lawyer on the lost one. DoFu, however, acted like suing people and winning was what he did best. If that's the case, I'd hate to see how badly he does anything else.

Thank You...I couldn't have said it better myself.

[onthefence]

I'm pretty sure BeerBud didn't hold himself out as an expert....especially an expert who's only lost one collections case and fired the lawyer on the lost one. Doug Fuller, however, acted like suing people and winning was what he did best. If that's the case, I'd hate to see how badly he does anything else.

It's entirely possible that there are fundamental issues with the prosper loans that would have made the cases entirely unwinnable if the defendant failed to show up.  I am by no where near ready to lay all of the blame in Doug Fuller's lap.  There very well may be no Prosper loans that Doug could win.

[Mtnchick]

I'm pretty sure BeerBud didn't hold himself out as an expert....especially an expert who's only lost one collections case and fired the lawyer on the lost one. Doug Fuller, however, acted like suing people and winning was what he did best. If that's the case, I'd hate to see how badly he does anything else.

It's entirely possible that there are fundamental issues with the prosper loans that would have made the cases entirely unwinnable if the defendant failed to show up.  I am by no where near ready to lay all of the blame in Doug Fuller's lap.  There very well may be no Prosper loans that Doug could win.

Then he probably should have kept his mouth shut about winning collection lawsuits all the time. If someone tells me they are professionals at something then they have purposely raised other's expectations of them. Frankly I had stopped trusting anything Prosper said at that point and I opted out of the court case. But the fact remains that Doug Fuller came in and said he won every collections lawsuit he'd ever been involved in except one and that was apparently the attorney's fault.

[ira01]

I'm pretty sure BeerBud didn't hold himself out as an expert....especially an expert who's only lost one collections case and fired the lawyer on the lost one. Doug Fuller, however, acted like suing people and winning was what he did best. If that's the case, I'd hate to see how badly he does anything else.

It's entirely possible that there are fundamental issues with the prosper loans that would have made the cases entirely unwinnable if the defendant failed to show up.  I am by no where near ready to lay all of the blame in Doug Fuller's lap.  There very well may be no Prosper loans that Doug could win.

That's complete bullshit.  I know from personal experience that Prosper should have had no problem winning default judgments.  Its business model isn't that hard to explain to a judge, and the fact that Prosper was the original creditor on all the NAT loans, and also owned all the NAT loans at the time of the NAT, made it even simpler:  "Good afternoon, your honor, we made a loan to the borrower from our own funds, deposited those funds into the borrower's bank account, the borrower agreed to repay the loan with interest, the borrower made a few payments, hasn't paid anything in 4+ months, and we are the current owner of the notes as well."  It's a no-brainer. 

Moreover, Prosper never even managed to serve (or at least file proofs of service) in the majority of cases we've been able to see.  That's just ineptitude. 

[Fred93]

What criteria did Prosper use to pick the 66 test cases? One would think they would have at least picked people they could find

They were California loans and loans that Sheriff DoFu had hand-picked as particularly winnable, so he could establish a strong legal precedent.

Pfftt.

This is all indeed puzzling.  How the hell could they screw this up so badly?

My theory is that Doug Fuller knew what he was doing, but Chris Larsen wouldn't let him spend enough money to do it right.  A resource allocation problem.  Underfunding.  Starvation.

[cowdog]

Exactly. See, Doug Fuller wasn't part of it, he came from the outside. He didn't know Prosper was in danger, that it all wouldn't matter soon anyway.

Worst thing is he really thought it was a decent high profile job for an extended period of time.

Hope options weren't part of his pay.

 

[bamalucky]

Nothing was stopping Doug from quitting was there?

He's continuing the cover up.

Anyone still have any respect for Andrew? Nice guys don't keep perpetuating the lies.

[Tokyo Joe]

Has Andrew been quoted perpetuating a lie?

I don't respect or disrespect him, but he seemed like a decent guy.  If he's lying about stuff, then a pox on him along with the rest of the company...

But just because he or Doug hasn't "quit" doesn't necessarily make them bad guys.  I've worked for companies I thought were shit (in fact, I kind of work for one now).  If there's not a better job to jump to, why jump?