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[mothandrust]

Prosper markets itself as an alternative to CD's and stocks, but imagine if you put a larger sum of money into it and encountered these problems.

Prosper should let me withdraw $14, erroneously claiming that I have a negative balance of $410. 

What if the numbers were larger...?

...Senior citizens decide to "bank on each other" and make Prosper loans.  But then when it comes time for the little old lady to withdraw $140 for this week's groceries, the system says that she owes Prosper $410 and she can't withdraw the money.

...An investor eschews dividends from stocks and "invests in Prosper".  But when trying to withdraw $1400 to pay his mortgage payment, Prosper shows a negative balance of $4100 and asks him to transfer money in.

[bluestar148]

  You haven't signed up for lending club yet?

[312lender]

You can make more money on prosper than lending club.

[yankeefan]

You can make more money on prosper than lending club.

Is that because Prosper will let you borrow more money than Lending Club will?

[Xenon481]

You can make more money on prosper than lending club.

Is that because Prosper will let you borrow more money than Lending Club will?

 

[312lender]

lol

[Senator]

I'd like to ask that they not auto pull from my account anymore and I'd rather send them a check (well, a bill pay check, anyway) each month.  According to my budget, I use the funds from income on the 5th to pay for my note due on the 20th.  15 days is sufficent time to mail them a check and have it processed, correct?

Any implications if I send them a C&D on pulling directly from my account?  It seems silly, but I've been paying in advance and it takes (just a tiny) bit off the interest by not waiting until the due date.  And I like to be in control of my funds and not just have them sitting there until they feel compelled to pull them.  Plus, I'm figuring if I send in a paper check or call and make a manual payment their stupid system will ALSO pull on the due date.  I have a cushion in my account to cover it, but would rather not go through the hassle.

Any thoughts?

Your interest rate was partially based on auto pulls from your account.  IIRC those who elected to mail checks were charged an additional 0.5%.

[ira01]

I'd like to ask that they not auto pull from my account anymore and I'd rather send them a check (well, a bill pay check, anyway) each month.  According to my budget, I use the funds from income on the 5th to pay for my note due on the 20th.  15 days is sufficent time to mail them a check and have it processed, correct?

Any implications if I send them a C&D on pulling directly from my account?  It seems silly, but I've been paying in advance and it takes (just a tiny) bit off the interest by not waiting until the due date.  And I like to be in control of my funds and not just have them sitting there until they feel compelled to pull them.  Plus, I'm figuring if I send in a paper check or call and make a manual payment their stupid system will ALSO pull on the due date.  I have a cushion in my account to cover it, but would rather not go through the hassle.

Any thoughts?

Your interest rate was partially based on auto pulls from your account.  IIRC those who elected to mail checks were charged an additional 0.5%.

No.  The extra .5% was for those who chose paper drafts rather than ACH.  But in both cases, Prosper itself automatically initiated the payment (for the paper drafts, Prosper printed out checks from the borrower and then deposited them).  It was always stupid for any borrower to elect the paper drafts.  That's different than withdrawing consent for ACH payments.  As I understand it, federal law gives consumers who agreed to ACH payments the absolute right to withdraw consent, and having agreed to such payments in a contract does NOT effect that.  Any borrower is free to demand that Prosper stop making automatic pulls, and is free to mail in checks instead. 

[Senator]

Thanks for clearing that up.

[Ray Kremer]

You haven't signed up for lending club yet?

With their "Financial Suitability conditions"? Not all of us are homeowners with high salaries. But you don't have to be a homeowner to be able to have an extra couple thousand to invest somewhere either.

[Ray Kremer]

I was glancing at my currently Late notes and found another anomaly, this time apparently in my favor.

Rather than a screenshot, let's see if a copy/paste works okay:

Note #39148-18
2018516    May-11-2010    May-12-2010    Automatic    Failed -$1.08      -     -     -     -     -
2018048    May-11-2010    May-11-2010    Automatic    Failed $1.08    -    -    -    -    -
5580630    Apr-28-2010    Apr-29-2010    Automatic    Failed -$1.08    -    -    -    -    -
5580630    Apr-28-2010    Apr-28-2010    Automatic    Paid    $1.08    -    -    $0.60    $0.48    $22.24
5521282    Mar-28-2010    Mar-28-2010    Automatic    Paid    $1.08    -    -    $0.55    $0.52    $22.72
5462037    Feb-28-2010    Feb-28-2010    Automatic    Paid    $1.08    -    -    $0.62    $0.45    $23.24
5396815    Jan-28-2010    Jan-28-2010    Automatic    Paid    $1.08    -    -    $0.64    $0.44    $23.70
5329257    Dec-28-2009    Dec-28-2009    Automatic    Paid    $1.08    -    -    $0.63    $0.45    $24.13
5270616    Nov-28-2009    Nov-28-2009    Automatic    Paid    $1.08    -    -    $0.66    $0.42    $24.58

Alright, yes, more or less.

You may recall me pointing out before that failed payments used to show up as paid then failed, with the amount getting added then subtracted in the "total paid" column and no numbers appearing in the block on the right. But post-maintenance, both items are labeled failed. I noted this problem before where the amount of the failed payment did manage to go in on the right-hand block but was then taken out again, except they didn't refund the Prosper fee they had already deducted. With this note, 39148-18, The Apr 28 payment failed, but I was given the money for it and they didn't take it back. I guess the borrower here got a free payment out of it too. This one also fell in that small window where no Prosper fees were taken (I believe they've already said they're just letting those slide since it's their mistake in our favor).

So what this tells me is the accounting frak-ups during those couple of days of the maintenance vary wildly. This is the third error I've found linked to a failed payment and they all are different types of errors. Whatever they did to their computer system must have really screwed the pooch.

[God-Father]

Don't worry, they are fixing everything tonight.

Maintenance notice: The Prosper site will be taken offline for maintenance at 9:30 PM Pacific, May 18, 2010 and should be back online by 10:30 PM.

[gassman0102]

One of the issues that they are still having problems with is initiation of processing.  Before the big maintenance loan payments would initiate the ACH pull the business day before the payment date.  Since the big maintenance they have been initiating the ACH pull 1 or 2 business days AFTER the loan payment date.  This causes a delay in the lenders receiving their payments.  While there is a delay in the payment date, the borrowers (rightly so) pay no extra interest and the lenders (unfairly) receive no extra interest for the delay.

I had funds removed from my cash account for a first failed payment on a loan.  Fortunately they did not remove more funds when the 10 day second pull failed also.  I am still waiting for the reimbursement of these improperly removed funds.

I had a loan that initiated payoff just before the maintenance.  This loan hung up as processing for 2 weeks before being marked as paid.  Unfortunately the funds still have not been deposited into my cash account a week after the loan was marked as Paid.

gassman

[God-Father]

Maintenance notice: The Prosper site will be taken offline for maintenance at 10:00 PM Pacific, May 20, 2010 and should be back online by 11:00 PM

[ducks]

Maybe they'll fix this:

Payment number	Transaction effective date	Account effective date	Type	Status	Total paid
OP5596316	Apr-27-2010	Apr-27-2010	Manual	Processing	$1.72