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[Elmslice]

When one of the auto loans fails to fund, I fully expect the seller to kep re-listing the loan until they can get it funded.  If it was a solid loan, why would they re-sell it in the first place.

Anyway, since the VIN number is not listed, how will lenders be able to see the individual listing history for any specific vehicle-loan?

At the risk of repeating myself: no Prosper lender should bid on these auto loans.   All used car loans are extremely risky.  The ones on the new and unimproved Prosper appear to be worse than average -- higher mileage older cars with high interest rates and lots of payments to go.  Danger danger danger.

More broadly, Prosper had the opportunity to relaunch strongly, by addressing it's serious preexisting problems:  poor collections, poor customer service, and poor lender relations.  Instead, it gave us (or at least those of us in CA) the opportunity to buy bits of mega risk auto loans.   Yuck.

To anyone dropping by this forum who is considering making an initial investment in Prosper loans:  my advice:  don't do it.  Don't open an account.  Don't bid.  Just don't.   

[misssalaska2000]

My BF just sat in on jury duty for a woman who was suing a local car dealership.

It was one of those ones where the dealership offers, "Bad credit?  No problem!"

This woman paid $9k+ for a 14 year old Suzuki sidekick or something!  ANNNNND her interest rate was somewhere in the 20s!!

Holy crap that's bad.

[Urbi_et_Orbi]

My BF just sat in on jury duty for a woman who was suing a local car dealership.

It was one of those ones where the dealership offers, "Bad credit?  No problem!"

This woman paid $9k+ for a 14 year old Suzuki sidekick or something!  ANNNNND her interest rate was somewhere in the 20s!!

Holy crap that's bad.

So, why was she suing?

[misssalaska2000]

Something about them denying her credit based on her race and being a female.  Basically the dealership forgot to dot their i's and cross their t's.  They checked a box denying her credit based on "other reasons" but didn't specify.

If I understand correctly, this is against some law.

The jury awarded her because legally they WERE wrong, but they gave her a nominal amount.  I don't know the amount, but it was NOT NOT NOT anything CLOSE to even a FRACTION of what the trial cost in terms of time.  (It had been going on for THREE years.)

[czach]

But it is OK for "institutions" to sell *worse* credit holders' loans??

Wait a minute....

Are you saying that Prosper is reselling loans from *other loan companies*?

If so then they are totally in business. Because if there's one thing I learned with Prosper 1.0 it's that the internet is *chock full* of fools who will bid down loans with no regard to value. I mean this could be the ultimate dumping ground for:

High risk car loans
High risk mortgages
And heck knows what else.

So when can I sell some of these defaults in my portfolio? I mean I know they haven't paid in 6 months to a year, but honestly, some of them have 20%+ rates. They gotta turn around at some point, right?

CZ