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Great reference to Oingo Boingo : http://www.youtube.com/watch?v=_UbGtjnluyY
* Yes, I spelled this wrong in honor of all ppl who post (here and elsewhere in the world) and can't figure this out...
This is how I think prosper should solve the deadbeat problem. Lenders should be owners of the loan portions they bid on and a secondary market has to exist for lenders to sell their portions. When a loan goes default/late a lot of people may be interested in cutting their losses and they could sell their loans on the secondary market. In which case someone could come in (either an individual or a collections company) and buy up the late portions on the cheap. If you hold enough portions to total say $500 dollars AND the borrower is in default then prosper should release the information the borrower provided to prosper to you so that you can persue collections yourself. In this way prosper doesn't have to headache themselves in this collections business AND someone who is motivated to collect may actually take over. I am a bit surprised how poorly prosper has done when it comes to collections, but they shouldn't even be doing collections in my opinion. Let the lenders sell their loans or do their own collecting and the problem can be solved that way. You are welcome prosper, feel free to send me a check
Also, I don't think this plan would work with Prosper 3.0, since Prosper now owns the entire loan.
Quote from: bankomatic on August 24, 2009, 09:40:25 pmThis is how I think prosper should solve the deadbeat problem. Lenders should be owners of the loan portions they bid on and a secondary market has to exist for lenders to sell their portions. When a loan goes default/late a lot of people may be interested in cutting their losses and they could sell their loans on the secondary market. In which case someone could come in (either an individual or a collections company) and buy up the late portions on the cheap. If you hold enough portions to total say $500 dollars AND the borrower is in default then prosper should release the information the borrower provided to prosper to you so that you can persue collections yourself. In this way prosper doesn't have to headache themselves in this collections business AND someone who is motivated to collect may actually take over. I am a bit surprised how poorly prosper has done when it comes to collections, but they shouldn't even be doing collections in my opinion. Let the lenders sell their loans or do their own collecting and the problem can be solved that way. You are welcome prosper, feel free to send me a check Although a good idea, anyone who bought up pieces of a late loan would be considered a debt collector, and would probably have to be licensed. So no individuals would be able to participate, except in a few cases such as a state that didn't require licensing for less than a certain number of loans (like New Mexico, IIRC, from Travellers' attempt to purchase a defaulted loan from Prosper for twice the amount Prosper accepted from a JDB instead). Also, I don't think this plan would work with Prosper 3.0, since Prosper now owns the entire loan.
Quote from: ira01 on August 24, 2009, 09:47:53 pmQuote from: bankomatic on August 24, 2009, 09:40:25 pmThis is how I think prosper should solve the deadbeat problem. Lenders should be owners of the loan portions they bid on and a secondary market has to exist for lenders to sell their portions. When a loan goes default/late a lot of people may be interested in cutting their losses and they could sell their loans on the secondary market. In which case someone could come in (either an individual or a collections company) and buy up the late portions on the cheap. If you hold enough portions to total say $500 dollars AND the borrower is in default then prosper should release the information the borrower provided to prosper to you so that you can persue collections yourself. In this way prosper doesn't have to headache themselves in this collections business AND someone who is motivated to collect may actually take over. I am a bit surprised how poorly prosper has done when it comes to collections, but they shouldn't even be doing collections in my opinion. Let the lenders sell their loans or do their own collecting and the problem can be solved that way. You are welcome prosper, feel free to send me a check Although a good idea, anyone who bought up pieces of a late loan would be considered a debt collector, and would probably have to be licensed. So no individuals would be able to participate, except in a few cases such as a state that didn't require licensing for less than a certain number of loans (like New Mexico, IIRC, from Travellers' attempt to purchase a defaulted loan from Prosper for twice the amount Prosper accepted from a JDB instead). Also, I don't think this plan would work with Prosper 3.0, since Prosper now owns the entire loan.Well, even if it's only companies who can persue collection, let them bid on the loans in a competitive auction. I think that way lenders get something for those loans and deadbeats are hounded by collectors like they should be.