Yeah, Prosper's projections have been so accurate in the past, I'd rush to believe them now.
Ira, LOL about the junk debt buyer claim. It caused me to log in to .com for the first time in a month. I still have 20 defaults. 11 remain in collections.
This language appears on a loan that was charged off in March, 2008:
This loan is charged-off
Because payment is more than 4 months late, this loan is charged-off. Once a loan is charged-off, it cannot become current again. Prosper will continue to collect on charge-offs until they are sold to a debt buyer. Any payment on the loan received after charge-off but before sale will be credited to lenders as a recovery. Learn more.
The "learn more" link says:
What is a debt sale, and when can I expect one?
Prosper may, in our sole discretion attempt to sell a borrower loan to a third party debt buyer at any time. Because debt buyers buy many past-due loans at once, loans might not be sold immediately after charge-off, or may not sell at all, due to market conditions. The loan will remain with a collection agency, which will continue collection efforts until the loan is actually sold to a debt buyer. If a loan is sold in a debt sale, the entire loan sale price will be allocated to lenders. Each lender will receive their pro-rata share of the loan sale proceeds.
See the outcome of past debt sales.
The past debt sales link confirms what Ira posted and what we knew - the last debt sale was in December, 2007.
It's awfully nice that Prosper reserves the "discretion" to comply with the terms fo the contract, and even nicer that Prosper says it "may" do something that it hasn't done for three years. Once again, no credibility.