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[Urbi_et_Orbi]

Anyone who has ever worked with complex software based systems knows that bugs creep in.

eh...... I think Prosper refers to these as borrowers.

Did you mean to say lenders?

[ira01]

Na,how long should blender offset take?

Well, Shira did promise a response to that "by the end of the year" -- 2007. 

[NewHorizon]

I must be confusing the blender offset issue with something else?
I thought they had implemented a manual process and an automated process was promised for later...?
And I thought bmay2 confirmed that blender offsets were indeed happening - at least for her.

[bamalucky]

I must be confusing the blender offset issue with something else?
I thought they had implemented a manual process and an automated process was promised for later...?
And I thought bmay2 confirmed that blender offsets were indeed happening - at least for her.

It only happens if the borrower wants to use their repayments to pay.

I have a borrower,slara512 who is a lender..

http://www.ericscc.com/listings/188744  His $19,500 loan that defaulted

http://www.ericscc.com/lenders/slara512 His 35 loans he's still collecting on.

[Nora_Lenderbee]

I must be confusing the blender offset issue with something else?
I thought they had implemented a manual process and an automated process was promised for later...?
And I thought bmay2 confirmed that blender offsets were indeed happening - at least for her.

IIRC, Prosper was able to take her group leader rewards as offset, but not any loan payments that she received.

Good old Bev. 

[112233]

group leader rewards. BFD

[brianguy]

I must be confusing the blender offset issue with something else?
I thought they had implemented a manual process and an automated process was promised for later...?
And I thought bmay2 confirmed that blender offsets were indeed happening - at least for her.

It only happens if the borrower wants to use their repayments to pay.

I have a borrower,slara512 who is a lender..

http://www.ericscc.com/listings/188744  His $19,500 loan that defaulted

http://www.ericscc.com/lenders/slara512 His 35 loans he's still collecting on.

lucky for you, the dude's got 26 defaults, 4 payoffs, and 3 current, so he's not really collecting much of anything really   but really if he defaults yes they should be seizing his assets on your behalf to pay obligations.

I haven't done much thought on this issue since I came around later in the game, but I suspect somebody higher up decided taking such offsets might hasten the house of cards to come tumbling down (see below for more info), and they didn't want to lose any potential originations either.

I would suspect a lot of blenders' payments received would not be nearly enough to pay their own loans, and serve a disincentive to make any further payments if they're late or charged off (which don't usually happen anyway), but probably something they didn't want to deal with.   nothing in it for them in this regard, except their name which is already toast.

[God-Father]

Na,how long should blender offset take?

BLender offset is a management/business decision that needs to occur.  It is not a programming issue. 

In general, I am pretty impressed with Prosper’s software engineers.  I suspect if a decision was made to implement Blender offset, that it would be up in running in short order.

[mk408]

In general, I am pretty impressed with Prosper’s software engineers.  I suspect if a decision was made to implement Blender offset, that it would be up in running in short order.

I highly doubt they have any left:

http://sfbay.craigslist.org/sfc/sof/1637681944.html

[Senator]

Core Web Developer @ Prosper.com (financial district)
Date: 2010-03-10, 10:33AM PST
Reply to: job-makw7-1637681944@craigslist.org [Errors when replying to ads?]

Needed: Web Developer who knows C#, Java, or C++
Company: Prosper.com
Location: San Francisco, 1 block from BART
Compensation: Good salary, equity, & benefits

About you:
* Pretty darn good with server side programming in C#, Java, or C++.
* Well rounded generalist - can work on front end or back end.
* Have a computer science degree, or equivalent education.
* You've shipped web applications, preferably for a startup.

About us:
* Prosper.com is a microfinance startup backed by numerous established investors. Think of it as eBay for money, and then check out our site.
* We are executing and scaling now. We've got customers, revenue, and have lead the peer-to-peer lending economy.
* Veteran "done it before" management team, headed up by Chris Larsen. Chris built up E-Loan and sold it $300 million.
* Good balance of startup and mature company vibe. Think flexibility, established vision, minimal red tape.

About the role:
* Developing web applications using C# and ASP.NET in N-tier environment.
* Some front end work (Javascript, HTML). some back end work (SQL, SQL Server)
* Oh, oh, training! If you know Java or C++ (and don't know C#), we will teach you.
* Reports to Director of Software.

NOTE:
* Captain Recruiter is first point of contact.
* All applications receive a response.

    * Principals only. Recruiters, please don't contact this job poster.
    * Please, no phone calls about this job!
    * Please do not contact job poster about other services, products or commercial interests.

   
   
PostingID: 1637681944

Any know who the Director of Software is?

[pacino58]

NA, since you seem to stick up for Prosper, I wanted to provide another reason why I distrust Prosper and do not believe they will ever be a viable company.

From the issue of this thread, this is part of the response I received from Prosper.  Bolding is mine.

We appreciate you bringing this to our attention and we are investigating the source of the problem.  We have run a query and identified 6 other loans impacted by this error.  We will be processing a refund for these payments in the near future and will update you on the status by the end of the week.

It is now Friday afternoon and I still have not received a response from Prosper, I just emailed them again for their status update.

Why would I want to continue to do business with a company that cannot even keep their promises such as returning a status update to you by the end of the week, really not too much to ask for, to actually provide a service to a lender the true customer in the transaction.  Day by day Prosper seems to keep forgetting that.

[ira01]

We appreciate you bringing this to our attention and we are investigating the source of the problem.  We have run a query and identified 6 other loans impacted by this error.  We will be processing a refund for these payments in the near future and will update you on the status by the end of the week.

It is now Friday afternoon and I still have not received a response from Prosper, I just emailed them again for their status update.

Clearly you need a remedial lesson in Prosperspeak -- read their statement again carefully:  it says "by the end of THE week," not "by the end of THIS week."  No doubt, whomever wrote that was thinking of some other week.  Just like when Prosper Shira wrote that we would have an update about the blender issue "at the end of the year" -- since she wrote that in the summer of 2007, most of us naively thought she meant the end of THAT year.  Since we still haven't received the promised update, clearly she didn't mean the end of 2007, 2008, or 2009.  I guess there's still hope for the end of 2010.   

[nonattender]

We appreciate you bringing this to our attention and we are investigating the source of the problem.  We have run a query and identified 6 other loans impacted by this error.  We will be processing a refund for these payments in the near future and will update you on the status by the end of the week.

It is now Friday afternoon and I still have not received a response from Prosper, I just emailed them again for their status update.

Clearly you need a remedial lesson in Prosperspeak -- read their statement again carefully:  it says "by the end of THE week," not "by the end of THIS week."  No doubt, whomever wrote that was thinking of some other week.  Just like when Prosper Shira wrote that we would have an update about the blender issue "at the end of the year" -- since she wrote that in the summer of 2007, most of us naively thought she meant the end of THAT year.  Since we still haven't received the promised update, clearly she didn't mean the end of 2007, 2008, or 2009.  I guess there's still hope for the end of 2010.   

Shira's been history since, what, late 2007 or something?  This is like complaining that George Bush still
hasn't ended the war.  Dude, he's not working there anymore - and neither is Shira Levine, so move on.

-t

[112233]

We appreciate you bringing this to our attention and we are investigating the source of the problem.  We have run a query and identified 6 other loans impacted by this error.  We will be processing a refund for these payments in the near future and will update you on the status by the end of the week.

It is now Friday afternoon and I still have not received a response from Prosper, I just emailed them again for their status update.

Clearly you need a remedial lesson in Prosperspeak -- read their statement again carefully:  it says "by the end of THE week," not "by the end of THIS week."  No doubt, whomever wrote that was thinking of some other week.  Just like when Prosper Shira wrote that we would have an update about the blender issue "at the end of the year" -- since she wrote that in the summer of 2007, most of us naively thought she meant the end of THAT year.  Since we still haven't received the promised update, clearly she didn't mean the end of 2007, 2008, or 2009.  I guess there's still hope for the end of 2010.  

Shira's been history since, what, late 2007 or something?  This is like complaining that George Bush still
hasn't ended the war.  Dude, he's not working there anymore - and neither is Shira Levine, so move on.

-t

was shira exclusively responsible for these statements or was she speaking on behalf of prosper and presumably others who made the executive decision in regards to the blender issue?

a more accurate analogy would be us disregarding statements put out by a president's previous press secretary because that press secretary resigned to raise a baby or what have you.

[Urbi_et_Orbi]

http://blog.prosper.com/2010/03/16/lender-servicing-fee-refunds/

ETA: decided it was better to capture the contents of the blog entry.

Recently we received an email from one of our lenders calling attention to a very odd looking loan payment transaction.  The situation involved a loan from 2007 that had gone delinquent, but had been recently cured.  On loans of that vintage, Prosper forfeited servicing fees during the time that a loan was more than 30 days delinquent.  However, on the “post cure” payments, the servicing fee was being inaccurately equated to the entire payment amount.

In our initial investigation, we found 30 payments spread across 23 loans that were definitely impacted.  We have processed refunds on those loans during Monday night’s batch.  These have been posted to the lender’s account as “Service Fee Refund” with a transaction date around 1 am on 3/16.  We have identified another 45 payments in the $10 to $25 dollar range that we are reviewing to see if they are impacted.   That review should be completed by the 17th and the refunds for the impacts transactions issued that night.

Because of the module in which this logic resides, the testing and migration of a “fix” into the production environment is complicated.  As such, we are creating a “watchdog” query that will run on a weekly basis to catch and refund an subsequent errors until the fix is installed in production.