Credit card companies and banks are allowed to alter the terms of their loans because they are THE LENDER.
Prosper will not be the lender on any of these loans, and should not have the power to change any terms or negotiate any settlement without THE LENDER'S authorization. Any lender signing anything giving this power to Prosper is a fool.
In theory it would be good for Prosper to negotiate settlements. But there are two problems here.
1) Prosper has a piss poor history of looking out for the Lender's interests.
2) Prosper has specifically stated in their new agreement that Prosper IS NOT A FIDUCIARY AGENT for the lenders.
Which begs the question, who the heck is looking out for the lenders at prosper? Obviously no one.