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[futuretrump]

An update for those playing at home.......

Prosper, having promised to call me to discuss my refusal to sign the new lender agreement and transfer $25.00 in to get MY $1.78 out sent the following email (name and prosper support number removed)...

The twenty-five dollar minimum for ACH transfers is a long standing policy of Prosper.  You will recall that it was in effect prior to the start of the quiet period.  While we have made changes to accommodate smaller transfers to lenders in states where we are not currently open to lenders, the ability to extend this functionality is not available in states in which we are open.  This is a system limitation. 


Your situation – ie, no active loans and a cash balance of less than $25 in an “open” state – is a new one and we are working to find a solution.  This is not something that is going to be resolved today.  We have given you a feasible workaround that will allow you to withdraw you cash balance – likely before a system solution can be implemented to address this situation.  It is clearly not our preferred alternative as Prosper ends up having to pay two transaction fees (one for the inbound transfer and one for the outbound transfer), but it is a method that would work.

I guess the rocket scientists at Prosper never considered the fact that this situation would occur.  Who exactly is doing any thinking over there?  Anyway, I responded that they needed to have this worked out by COB Wednesday WHITHOUT ME SIGNING THE NEW LENDER AGREEMENTS AND TRANSFERRING MORE MONEY IN or I would consider following through with a small claims court case.

What do you guys think?

[bamalucky]

They thought it would be so great that no one would ever quit lending 

[cowdog]

Seems to me if the lender agrees to forever sever the relationship with Prosper, that Prosper should transfer the remainder of the account out, even if under $25.

I'd glady consent to a lifetime ban from their site to get the last little bit out without transferring in, or signing new agreements.

[Urbi_et_Orbi]

This may be new to them, but is perhaps a sign of things to come. 

[Fred93]

Your situation – ie, no active loans and a cash balance of less than $25 in an “open” state – is a new one and we are working to find a solution.  This is not something that is going to be resolved today. 

Like, um, who would have thought some dude would want his money back.

[BrassKnuckles]

Small claims court all the way.

I would also file a complaint with every federal agency you can think of.  Oh, I am just *sure* the SEC wants to hear about Prosper again after the latest flap with them.  Even Team Obama has some sort of new Consumer Watchdog thingy.  Just roll Prosper though the mud.

[ira01]

Small claims court all the way.

I would also file a complaint with every federal agency you can think of.  Oh, I am just *sure* the SEC wants to hear about Prosper again after the latest flap with them.  Even Team Obama has some sort of new Consumer Watchdog thingy.  Just roll Prosper though the mud.

+1.  As usual, Prosper's response is idiotic.

First, did it really not occur to them that many lenders would wind up with less than $25 in their account with no active loans remaining and a desire to not sign new legal agreements?

Second, Prosper has no right to extort your agreement to new and different legal agreements as a condition of returning your money to you.

Third, although it is true that the $25 minimum is a longstanding Prosper policy, the issue here isn't your desire to avoid transferring in to transfer out; it is Prosper's improper attempt to coerce you into agreeing to new legal agreements.  There is no longstanding Prosper policy that lenders would be forced to agree to new terms and conditions in order to retrieve their own money.  Prosper can simply initiate an inbound transfer for you without your agreeing to the new legal agreements. 

Fourth, if there really is a "system limitation" preventing them from allowing you to make an outbound transfer of your entire cash balance, then the obvious solution (to anyone with a brain, which obviously excludes Prosper) is for Prosper to simply immediately mail you a check for your balance.

In short, I believe Prosper's position is so lacking in merit as to border on the patently frivolous.  They are moronic for making this an issue -- it just makes them look bad.  If it were me, I would send them an email and/or fax stating that if they do not drop their extortionate attempt to coerce you into agreeing to new legal agreements and unconditionally agree to return your money by COB Friday, you will file an action for breach of contract and for conversion in small claims court, and will seek a substantial amount of punitive damages on the conversion claim.  I would add that you look forward to hearing Prosper explain to a judge their rationale for withholding your money unless you agree to their desired new legal terms despite your unwillingness to do so.  And I would add that once you file the suit, you will not accept Prosper's belated attempt to return your money unless Prosper also pays the filing and service costs of your suit. 

I also think a complaint to the SEC and the CA regulators would also be appropriate.  Do not, however, use the threat of such complaints in your communication to Prosper in an effort to convince them to return your money.  That could constitute extortion. 

Of course, as always, TINLA.

[112233]

I also think a complaint to the SEC and the CA regulators would also be appropriate.  Do not, however, use the threat of such complaints in your communication to Prosper in an effort to convince them to return your money.  That could constitute extortion. 

Of course, as always, TINLA.

it's your money already. is that still extortion?

[112233]

if active loans = 0 then minimum outgoing transfer balance = cash balance

how hard is that to implement?

obviously they already have code in place to change this min transfer balance for other business rules

[God-Father]

I prefer

IF (suspended), then minimum outgoing transfer = cash balance.

That would give people a new and obtainable goal.   

[moremoneymarc]

In Illinois abandoned bank and business accounts must be turned over to the state treasury.  The state keeps a list and then will return the money to the rightful owner if requested.

You might contact your state asking them to intercede and obtain the money Prosper has sort of held on to against your wishes.  I assume there is an exact time period when they have to release money to your state.

http://www.sco.ca.gov/upd.html
Here is a link to californias unclaimed property division.

oops the period appears to be three years in california and probably varies from state to state.
"The State acquires unclaimed property through California's Unclaimed Property Law, which requires "holders" such as corporations, business associations, financial institutions, and insurance companies to annually report and deliver property to the Controller's Office after there has been no customer contact for three years."

You might ask customer service when they sent their last required annual report to the state for unclaimed property as I assume they did not code for that either.

[Mtnchick]

What's new? They were providing less than $25 withdrawals during the quiet period for everyone and they are providing it for people who aren't in the lending states. I'm no programmer but how hard is it to change to something you've already had in effect?? 

[Urbi_et_Orbi]

What's new? They were providing less than $25 withdrawals during the quiet period for everyone and they are providing it for people who aren't in the lending states. I'm no programmer but how hard is it to change to something you've already had in effect?? 

They just feel the need to dispatch a final insult as an actual customer has decided Prosper no longer deserves his business.

[futuretrump]

Ok, for those playing along at home.....

I sent Prosper an email that basically contained all of the fancy, lawery, words and phrases that Ira had previosuly suggested, telling them they had until COB Wednesday to return my money or I would file a small claims case against them for conversion and seek punitive damages. 

Guess what I got in my email today......a nice note from Prosper. (see below)

The issue involving transfers of less than $25 is a system limitation.  The situation was reviewed with the Prosper Engineering team today and it was agreed to implement the capability for any Prosper lender to do one transfer of any dollar amount every thirty (30) days.  Intervening transfers will still be subject to the $25 limit.

Work on implementing this feature has begun, however, due to the testing requirements around the ACH sub-system, we do not have a projected live date.  Rather than have you wait for this implementation, we have initiated an ACH deposit to your Wells Fargo account for $1.78.  Please be advised that this type of “memo ACH” transaction is processed as an exception and as such shows in the reverse direction on the My Account>Bank Accounts>Transfers page. It is correctly reflected on the My Account>Bank Accounts>Activity page.

So for what it is worth if any of you run into the same problem down the road (as I suspect Prosper won't actually change their system), use Ira's words and you can get them to buckle.

Ira, I owe you a beer.

[bamalucky]

Better make it a Miller for 1.78