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[TotoMMB]

So, it bothered me before, now it's really irritating me:

On a late loan, the second a payment is made, the loan changes to "current", regardless of the fact it now takes 73 days for a payment to clear...

But wait, what's this? The payment failed, and yet, the loan still shows as "current". And this isn't even the first failed payment (for this cycle)...it's the THIRD!!

Really, I think they've unplugged the Speak & Spell and turned out the lights...because their technology (once their "strong" suit) has gone to hell. I'm waiting for the e-mail that says:

Dear idiot investor:

We've changed our policy to credit accounts only on a quarterly basis. And only if you have more than $100 in your account. And the Euro is trading greater than $1.40US. And there hasn't been an earthquake in CA in the past 14 days. And it's a non-election year.

PS - If you bid, we'll give you $.01 for every $100,000 in bids.

Thank you.

Prosper Team

[God-Father]

Yeah - I just had one that was three months late.  The borrower made a manual payment that covered two months.  The manual payment hasn't cleared yet.  Even if it had, the loan would now be one month late.  Prosper shows it as CURRENT.   

[Xenon481]

Prosper needs to get their act together and fix this crap that's they've left broken for the last few months.

Nominate for The Lobby.

[MsTabbyKats]

On my new loan....I made a 3 month payment about a week ago.  It's still showing as "processing".  I tried to made another payment, and I can't...because the other payment is in "the processing" stage!

The only things that seem to be working correctly are transfers out and payments from notes that I've sold.

[Cushie]

Second for lobby. 

[havastat]

This is not necesarily technical error. It could be policy.

Prosper needs to minimize their reported delinquencies to attract investors in the short term.

It may be good policy. Once one has become seriously delinquent, what's the incentive for paying? If one will end up getting reported out the same way whether one pays the bill or keeps the cash, there are people who will keep the cash. If Prosper offers some sort of amnesty to people who pay, maybe it will get better collections.

[TotoMMB]

This is not necesarily technical error. It could be policy.

Prosper needs to minimize their reported delinquencies to attract investors in the short term.

It may be good policy. Once one has become seriously delinquent, what's the incentive for paying? If one will end up getting reported out the same way whether one pays the bill or keeps the cash, there are people who will keep the cash. If Prosper offers some sort of amnesty to people who pay, maybe it will get better collections.

That makes no sense. I have another loan that a payment failed and it's accurately labeled as late. Are they picking and choosing? Forget amnesty. Either you honor your obligation or you don't. But they shouldn't be dicking around with reporting (any more than they already have). It used to be real simple: Current, late (with 1 of 4 timeframes), or written off - and hopefully reported to credit agencies. Any post-write-off collections are a different story, even though were addressed contractually as well.

[TotoMMB]

I was going to start a new thread, but I guess I can piggyback on this one...

A payment shows up in my account this past evening on a loan that had no indication whatsoever of having a payment recently made...(this is not the same one that went late > failed pmt > current, as in my orig. post).

Here's the pmt transaction:

Jun-24-2010 9:22 PM     Jun-24-2010     Withdrawal     Collection agency fee     39463-33      049516680     Completed     -$0.18      $10.74
Jun-24-2010 9:22 PM    Jun-24-2010    Deposit    Service fee    39463-33    049516680    Completed    $0.02    $10.92
Jun-24-2010 9:22 PM    Jun-24-2010    Deposit    Note payment    39463-33    049516680    Completed    $1.08    $10.90

And here's the detail on the note:

2139573     May-28-2010     Jun-24-2010     Manual     Processing     $1.08      -     -     -     -     -
2027487    May-19-2010    May-19-2010    Manual    Paid    $4.87    $0.16    $0.49    $4.22    -    $53.18
2125081    May-14-2010    Jun-13-2010    Manual    Processing    $1.08    -    -    -    -    -
2125069    Apr-30-2010    Jun-13-2010    Manual    Processing    $1.08    -    -    -    -    -
past transaction data omitted

The "paid" transaction is old news and not in question. But the other three payments (or attempts) are brand new...never seen them before in my life - and I've been checking Prosper and most of my notes on a daily basis for the past 2-3 weeks. I know there are posts on not be able to make manual payments, and I'm wondering what made Prosper burp these up. But chalk up yet another G.D. glitch that should have no possibility of occurring in an operation that bills itself with the following terms and phrases (their words, not mine):

"largest"
"intuitive"
"innovative"
"pioneered P2P lending"

and my favorite "complete data transparency"

Granted, some of that is out of context and was probably written in the initial phase of the business (you know, when shit actually worked). But seriously, could anything devolve any more perfectly than this operation? Is it any wonder why Lending Club (and any future P2P lenders) are feasting on this slowly rotting and bloating near-corpse?

Who knew making .35/month could be such a chore?

BTW, the original loan that this thread was based on still shows current, below is the detail on that gem. After deciphering, it was last considered truly current on Apr. 28 (double pmt for Mar/Apr 18 due dates). And I really hate the double transactions for failed payments.

2125119     Jun-11-2010     Jun-14-2010     Automatic     Failed     -$1.76      -     -     -     -     -
2122603    Jun-11-2010    Jun-11-2010    Automatic    Failed    $1.76    -    -    -    -    -
2090206    Jun-02-2010    Jun-04-2010    Automatic    Failed    -$1.76    -    -    -    -    -
2088576    Jun-02-2010    Jun-02-2010    Automatic    Failed    $1.76    -    -    -    -    -
2028611    May-18-2010    May-20-2010    Automatic    Failed    -$1.76    -    -    -    -    -
2026822    May-18-2010    May-18-2010    Automatic    Failed    $1.76    -    -    -    -    -
5581681    Apr-28-2010    Apr-28-2010    Automatic    Paid    $3.53    $0.06    $0.09    $0.63    $2.76    $25.54
5547648    Apr-12-2010    Apr-14-2010    Automatic    Failed    -$1.76    -    -    -    -    -
5547648    Apr-12-2010    Apr-12-2010    Automatic    Paid    $1.76    -    -    -    -    -
5523829    Mar-30-2010    Apr-01-2010    Automatic    Failed    -$1.76    -    -    -    -    -
5523829    Mar-30-2010    Mar-30-2010    Automatic    Paid    $1.76    -    -    -    -    -
5501139    Mar-18-2010    Mar-22-2010    Automatic    Failed    -$1.76    -    -    -    -    -
5501139    Mar-18-2010    Mar-18-2010    Automatic    Paid    $1.76    -    -    -    -    -
5480779    Mar-09-2010    Mar-09-2010    Automatic    Paid    $1.91    $0.06    $0.09    $0.55    $1.21    $28.30
and so on...

[mothandrust]

And here's the detail on the note:

2139573     May-28-2010     Jun-24-2010     Manual     Processing     $1.08      -     -     -     -     -
2027487    May-19-2010    May-19-2010    Manual    Paid    $4.87    $0.16    $0.49    $4.22    -    $53.18
2125081    May-14-2010    Jun-13-2010    Manual    Processing    $1.08    -    -    -    -    -
2125069    Apr-30-2010    Jun-13-2010    Manual    Processing    $1.08    -    -    -    -    -
past transaction data omitted

We can only guess with Prosper, and if this is how they do their accounting of other people's money who are watching their accounts like hawks, what kind of mickey mouse stuff are they doing on their financials which will only be scrutinized long after they shut down?

My guess is that "Processing" has taken on a new meaning--instead of a payment made that is working its way through the system, I think now it means a payment is due from the borrower and they are having some kind of conversation about it.  The April 30 and May 28 payments are scheduled and due but then there's this big payment in mid-May.  I have a loan that has similar payment action on it, and the "Processing" payments are roughly a month apart. 

It's June 26 now, maybe in the next day or so there will be another "Processing" payment posted on this loan.