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[mothandrust]

Most of us had pretty low expectations for Prosper's "Post Charge-Off Collections Techniques", but I never thought it would actually cost me money.  The worst they can do is nothing, right?

Thanks to PCOCT, my lending account has been debited and the money charged back to the borrower--OVER THREE MONTHS after the collections payment was made and the loan was charged off!

Sent to Customer Service today:

I am a lender on Loan #8659 where the borrower made a Collections Payment CP6642 on 10/21/08.

On 1/29/09, it shows under "Recovery History" that this same payment was charged back.

This Prosper help file says that there is a 60-day limitation on chargebacks:

http://www.prosper.com/policies/lenders-chargebacks.aspx

Why then, on 1/29/09, far beyond the 60-day limitation, did Prosper allow this payment to be "disputed" and charged back?

http://www.prosper.com/lend/listing.aspx?listingID=105316

(Sorry about the thread duplication--I mistakenly had posted about this in the Verified section the other day and was hoping that it might get moved to the Lobby if others thought it worthy of that.)

[BrassKnuckles]

Prosper Blows

[Senator]

What do you EXPECT?  Prosper is just protecting its CUSTOMERS. 

[misssalaska2000]

Eeek!

I would send a letter, certified, return receipt, requiring them to deposit the money back into your account, per the agreement you cited.

Man, I'm really sorry... that's a shitty move on Prosper's part. 

[mothandrust]

Prosper's reply today:

Dear xxxxxxxxxx,

The 4-60 day window is only for ACH chargebacks. For NSF processing of paper checks this does not apply. Please let us know if you have any further questions, thank you.


For future reference, your Prosper support case number is 00352087.

Sincerely,
Prosper Customer Support

[Tokyo Joe]

I'm actually surprised you got a reply...  Someone is in the office today...

[ira01]

Prosper's reply today:

Dear xxxxxxxxxx,

The 4-60 day window is only for ACH chargebacks. For NSF processing of paper checks this does not apply. Please let us know if you have any further questions, thank you.


For future reference, your Prosper support case number is 00352087.

Sincerely,
Prosper Customer Support

How could it take more than 60 days for an NSF check to be returned?  That makes no sense (not that that is any surprise).  In my business (which uses a third-party billing service that prints paper checks and deposits them to process electronic check transactions), checks clear or are returned unpaid within 8-12 days, and never bounce after 14 days.

[Shenandoah]

How could it take more than 60 days for an NSF check to be returned?  That makes no sense (not that that is any surprise).  In my business (which uses a third-party billing service that prints paper checks and deposits them to process electronic check transactions), checks clear or are returned unpaid within 8-12 days, and never bounce after 14 days.

But who knows what day Prosper actually deposited it in the bank.
Do they show an indication of payment when they deposit the check, or when they receive the check?

[bamalucky]

Checks are a slam dunk to prosecute. Now they can go the bad check route on this borrower too.

[BrassKnuckles]

Prosper is so damn smug.  F*ck em.

[HollowOak]

How could it take more than 60 days for an NSF check to be returned?  That makes no sense (not that that is any surprise).  In my business (which uses a third-party billing service that prints paper checks and deposits them to process electronic check transactions), checks clear or are returned unpaid within 8-12 days, and never bounce after 14 days.

But who knows what day Prosper actually deposited it in the bank.
Do they show an indication of payment when they deposit the check, or when they receive the check?

If Prosper is not (and I don't know one way or another) timely in depositing checks, and it can be proven that at the time the check was received, the borrower actually had funds in the bak, but that at a later time, when Prosper deposited the check, the funds were depleted, I would question whether Prosper acted in a proper manner to delay depositing checks from people with known financial issues.

[Mtnchick]

How could it take more than 60 days for an NSF check to be returned?  That makes no sense (not that that is any surprise).  In my business (which uses a third-party billing service that prints paper checks and deposits them to process electronic check transactions), checks clear or are returned unpaid within 8-12 days, and never bounce after 14 days.

But who knows what day Prosper actually deposited it in the bank.
Do they show an indication of payment when they deposit the check, or when they receive the check?

If Prosper is not (and I don't know one way or another) timely in depositing checks, and it can be proven that at the time the check was received, the borrower actually had funds in the bak, but that at a later time, when Prosper deposited the check, the funds were depleted, I would question whether Prosper acted in a proper manner to delay depositing checks from people with known financial issues.

Wasn't it Prosper that claimed they wouldn't accept checks? Now they do, it bounces (and you're right, it probably sat on a desk for a month) and here we had a whole 'nother set of rules. 

[HollowOak]

How could it take more than 60 days for an NSF check to be returned?  That makes no sense (not that that is any surprise).  In my business (which uses a third-party billing service that prints paper checks and deposits them to process electronic check transactions), checks clear or are returned unpaid within 8-12 days, and never bounce after 14 days.

But who knows what day Prosper actually deposited it in the bank.
Do they show an indication of payment when they deposit the check, or when they receive the check?

If Prosper is not (and I don't know one way or another) timely in depositing checks, and it can be proven that at the time the check was received, the borrower actually had funds in the bak, but that at a later time, when Prosper deposited the check, the funds were depleted, I would question whether Prosper acted in a proper manner to delay depositing checks from people with known financial issues.

Wasn't it Prosper that claimed they wouldn't accept checks? Now they do, it bounces (and you're right, it probably sat on a desk for a month) and here we had a whole 'nother set of rules. 

Prosper is, I believe, legally obligated to accept payment in any negotiable form. Additionally, CP (Collection Payments) most definitely can be made with checks. I believe we had reports of the collection agency accepting credit cards.  That Denver Coffee Shop lady paid her +4 loan with her husband's card, IIRC.

[Mtnchick]

How could it take more than 60 days for an NSF check to be returned?  That makes no sense (not that that is any surprise).  In my business (which uses a third-party billing service that prints paper checks and deposits them to process electronic check transactions), checks clear or are returned unpaid within 8-12 days, and never bounce after 14 days.

But who knows what day Prosper actually deposited it in the bank.
Do they show an indication of payment when they deposit the check, or when they receive the check?

If Prosper is not (and I don't know one way or another) timely in depositing checks, and it can be proven that at the time the check was received, the borrower actually had funds in the bak, but that at a later time, when Prosper deposited the check, the funds were depleted, I would question whether Prosper acted in a proper manner to delay depositing checks from people with known financial issues.

Wasn't it Prosper that claimed they wouldn't accept checks? Now they do, it bounces (and you're right, it probably sat on a desk for a month) and here we had a whole 'nother set of rules. 

Prosper is, I believe, legally obligated to accept payment in any negotiable form. Additionally, CP (Collection Payments) most definitely can be made with checks. I believe we had reports of the collection agency accepting credit cards.  That Denver Coffee Shop lady paid her +4 loan with her husband's card, IIRC.

I know they are REQUIRED to but IIRC, there was a point where they were claiming they wouldn't. I THINK it was Gulp who shot a hole in that by having someone send a check and they took it.

[brianguy]

chargebacks??   holy F!   

if PCOCT gets me anything I would be kinda surprised, after reading everyone's horror stories.  now, I'm worried they might actually take hundreds from ME after reading this.  WTF???

how is that even legal or proper, as far as a bankruptcy proceeding goes?  are they trying to pay other creditors 1st?  I guess I didn't know Prosper allowed checks, but will have to read the whole thing to understand this more.

I know I have decided if I get anything approaching $5 rom 2 charge-offs and 1 BK I will throw a party and blow it all on punch and cookies.  if anyone needs an e-vite let me know