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[112233]

http://www.asc.state.al.us/Orders/2009/CO-2009-0016.pdf

[cowdog]

Page 2, lines 24-26:

PROSPER assigned borrowers a credit grade based on a commercial credit score from a credit bureau, but PROSPER did not verify personal information, such as employment and income.

 

[pioneer11]

Hmm...at one time we were led to believe that Prosper verified income.

[Mtnchick]

Nominate for lobby

[112233]

OP doesnt mind

[cowdog]

Yes, this is lobby material, we were told borrowers had to submit paystubs... seems Prosper didn't always adhere to their own policies, much less what they told lenders.

[onthefence]

Yes, this is lobby material, we were told borrowers had to submit paystubs... seems Prosper didn't always adhere to their own policies, much less what they told lenders.

And yet they throw in sarcasm when their honesty is being questioned.

http://blog.prosper.com/2009/07/20/prosper-is-working-hard-to-gain-access-for-investors-in-all-states/#more-1773

jenny | July 23rd, 2009 at 2:06 pm
How do we know that the process has acutally been started in a particular state? I mean can we really believe that it’s truly an ongoing process that is constantly being worked on?

Prosper Blog | July 23rd, 2009 at 7:05 pm
@jenny
Why would we lie about this? It is in our interest to have as many Americans eligible to participate as lenders. Also, we had no part in the Kennedy assassination.

The hard truth is people don't necessarily trust Prosper to tell the truth & follow through on their commitments.  SEC regulation was a necessary process for Prosper to survive.

[bamalucky]

Is prosper now operating in any of the states they settled with?

[Investar]

Is prosper now operating in any of the states they settled with?

Prosper 50 State Progress
Washington - approved just days after launch, earlier than predicted (approved 07/16/09)
◊ Lend: approved, no special restrictions
◊ Trade: approved
◊ Borrow: approved, no special restrictions
We had predicted Washington to come on board in August or September. Prompt approval may have resulted because Prosper was fresh in their minds. They had just sanctioned the 'old' Prosper, were an early participant in the NASAA states settlement.

Montana - approved at launch as predicted
◊ Lend: approved, no special restrictions
◊ Trade: approved
◊ Borrow: approved, no special restrictions
Of note, Montana sanctioned the 'old' Prosper, was an early participant in the NASAA states settlement.

The other (2) states '112233' pointed out to us (keep up the good work!)....

UPDATE Oregon - has now approved the 'new' Prosper (approved 4 weeks after relaunch, 08/07/09)
◊ Lend: approved with "financial suitability" restrictions
◊ Trade: approved
◊ Borrow: approved, no special restrictions
According to Oregon's sanction of the 'old' Prosper (PDF pg4, Part 3), Prosper's status as a development stage company with a limited operating history and a lack of profitability raises the possibility that Prosper could cease operations at any time due to the failure to raise additional capital.

Missouri - **active review status per regulatory activity
ø Lend: we do not expect approval
ø Trade: we had expected approval, we do not expect approval
◊ Borrow: approved, no special restrictions

[Investar]

Yes, this is lobby material, we were told borrowers had to submit paystubs... seems Prosper didn't always adhere to their own policies, much less what they told lenders.

When was that? I was already a Lender when I took out a loan last sumer (2008). The only add'l verification was a card sent to my address of record. To confirm, I replied on-line giving a "code" that was on the card. They already had a valid copy of my Driver's License. That was it. I'm an "AA" - can't speak for verification of lesser status borrowers. 

[Mtnchick]

Yes, this is lobby material, we were told borrowers had to submit paystubs... seems Prosper didn't always adhere to their own policies, much less what they told lenders.

When was that? I was already a Lender when I took out a loan last sumer (2008). The only add'l verification was a card sent to my address of record. To confirm, I replied on-line giving a "code" that was on the card. They already had a valid copy of my Driver's License. That was it. I'm an "AA" - can't speak for verification of lesser status borrowers. 

Same exact situation here.

[Cushie]

I was an HR.  First loan, no verification whatsoever (May of...whatever year they opened, 06, I think).  Second loan, had to do the online code thing (November 07, I think).  No other verification of income source (I just listed my SSDI) or anything else.  In fact, my loan went into a checking account that I wasn't even on - my husband's account.  Same with my payments, which are still coming out of that account.

[dotk]

....
Oregon - **active review status per regulatory activity
ø Lend: we did not, and do not expect approval any time soon
ø Trade: we do not expect approval
◊ Borrow: approved, no special restrictions
According to Oregon's sanction of the 'old' Prosper (PDF pg4, Part 3), Prosper's status as a development stage company with a limited operating history and a lack of profitability raises the possibility that Prosper could cease operations at any time due to the failure to raise additional capital.
....

The above mentioned PDF "nr_dfcs_6_25_09.pdf" is only 2 pages. Where is pg4, Part 3?

[Investar]

... according to Oregon's PDF ...

The above mentioned PDF "nr_dfcs_6_25_09.pdf" is only 2 pages. Where is pg4, Part 3?

So sorry, wrong link (I have 3 bookmarked for Oregon) please try this one
http://dfcs.oregon.gov/securities/enf/orders/S-08-0045.pdf

(I also edited my original post)

[Gogmagog]

I am so excited!  I can finally LEND in Washington again!   

I can stop these pesky Automated transfers of money out of Prosper, and put my money to use giving hardworking Americans a second chance!

My Propser portfolio has beat the S&P 500 performance over the same timespan.