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[Mtnchick]

It's doubtful this is a one person thing. I suspect there is quite a lot of $$$ sitting in dormant accounts. If Prosper did the right thing (yeah, I know.....) they'd do a sweep and notify those with no action in X months and below $25 that they can close their accounts and get the balance refunded. It SHOULDN'T be put on the lender to prompt them.

BUT this is a lender who IS prompting them and they are still trying to play hardball. So incredibly stupid on their part.

[ira01]

The filing fee is only $30, and you could have a buddy serve Prosper for free (or you can have the Sheriff do it for another $30).  If you win, you get those costs added on to your judgment.

Or try this: get the paperwork, fill it in, then don't file, but send Prosper a copy showing that you're all prepared to file.  The idea is Prosper would take you seriously and return your money to you without the cost of filing/serving.  I've heard that this strategy can work in small claims cases.  IANAL, but I would suggest that you don't bluff about this.  But rather, if you do this, be prepared to really file if Prosper doesn't do anything within, say, 15 days.

The forms are available here -- http://www.courtinfo.ca.gov/cgi-bin/forms.cgi  (select "forms group" "small claims").

[cowdog]

I'll be doing this when my account is over also... I've $1.79 in my account with 3 payments left on one loan. The other remaining loan just went to collections on payment 33, its now 30 days late, so it might be some time before a resolve on that one.

I assume I can flle in Los Angeles when the time comes?

[ira01]

I assume I can flle in Los Angeles when the time comes?

That's an open question.  It isn't clear to me whether venue is proper where you are, or only where Prosper is (San Francisco).  I can see arguments on both sides (but I haven't researched the issue of where venue lies in internet business cases).

[JammingJAY]

Could prosper be refusing to close the account because of the charge off limbo clause?

What would the effect be if they closed it and some charge off paid?

Is there a way to dispose (sell) the junk debt? Or are the JDB's still making "outrageous demands" to prosper?

 

[ira01]

Could prosper be refusing to close the account because of the charge off limbo clause?

What would the effect be if they closed it and some charge off paid?

The obvious answer is that once a lender has no more active loans, he/she should be allowed to withdraw all the cash, regardless of amount.  There is no need to close the account. 

Is there a way to dispose (sell) the junk debt? Or are the JDB's still making "outrageous demands" to prosper?

Although Prosper hasn't said, I imagine that Prosper hasn't even attempted a debt sale since they decided to violate the LRA by refusing to sell the bad debt over a year ago. 

[Fred93]

Or try this: get the paperwork, fill it in, then don't file, but send Prosper a copy showing that you're all prepared to file.  The idea is Prosper would take you seriously and return your money to you without the cost of filing/serving.

The problem with this is that mailing forms around, or any form of postal mail communication costs so much money that each item you send consumes a significant fraction of the amount you are owed.

I went around and around with Shell Oil, who owed me $3.00, a few years ago.  I sent one letter, but refused to send more.  The only affordable communications mechanism in such a conflict is toll free phone numbers.  

I would suggest calling daily.  Be polite.  Keep a record.  Eventually you can try blogging about it.

[ira01]

Or try this: get the paperwork, fill it in, then don't file, but send Prosper a copy showing that you're all prepared to file.  The idea is Prosper would take you seriously and return your money to you without the cost of filing/serving.

The problem with this is that mailing forms around, or any form of postal mail communication costs so much money that each item you send consumes a significant fraction of the amount you are owed.

Any postage or telephone charges would be appropriate damages to seek if you wind up suing.  The advantage of a suit in this situation is that you have the potential of recovering punitive damages.  Make sure you don't just sue for breach of contract (no punitive damages available).  I would also sue for conversion (punitive damages available).  Of course, the judge may well decline to award them.  YMMV.  TINLA.

[Beachey]

Wait - am I understanding this right?  With a <$25 balance, you can't even close your account without signing new agreements?

"Sign this or we'll keep your money". 
That can't be legal.

Other than the principle of the matter, is there a reason you don't want to sign the new agreement? 

ETA:typo

[112233]

Wait - am I understanding this right?  With a <$25 balance, you can't even close your account without signing new agreements?

"Sign this or we'll keep your money". 
That can't be legal.

Other than the principle of the matter, is there a reason you don't want to sign the new agreement? 

ETA:typo

isnt that enough?

[Risk_Reward]

Wait - am I understanding this right?  With a <$25 balance, you can't even close your account without signing new agreements?

"Sign this or we'll keep your money". 
That can't be legal.

Other than the principle of the matter, is there a reason you don't want to sign the new agreement? 

ETA:typo

isnt that enough?

+1

[Beachey]

Wait - am I understanding this right?  With a <$25 balance, you can't even close your account without signing new agreements?

"Sign this or we'll keep your money". 
That can't be legal.

Other than the principle of the matter, is there a reason you don't want to sign the new agreement? 

ETA:typo

isnt that enough?

Sure, I have no quibble with wanting to do this over principle.  What if I just want my money?

I am sure some board members have read the agreement closely and for my education I was curious if there is something they changed that you wouldn't want to agree to especially if you have no intention of ever lending again under any terms or conditions?

[NewHorizon]

I am sure some board members have read the agreement closely and for my education I was curious if there is something they changed that you wouldn't want to agree to especially if you have no intention of ever lending again under any terms or conditions?

I think if you did the math, the time it'd take to do that for the $1.78 would be less than minimum wage.   

[nonattender]

http://www.youtube.com/watch?v=NUU9UmT134M

-t

[God-Father]

ROFL