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[striders]

All,

I read in FTC website and I didn't anything that enforce an institution like Prosper to report to a credit bureaus. So will filing a complain to them do anything?

Also, for those who are in the same boat as me, I will urge you to also file a complaint to Prosper and/or BBB. The more people complaint, the more (hopefully) Prosper do something about this.

[Urbi_et_Orbi]

when these accounts go into collections is there not any grounds for the collection agency to stand on since all of these loans are owned by individuals and never prosper's property in the first place to sell?

is there any place that says that lenders actually do own the loans? what gives prosper the right to take over our loans and do whatever they want with them even though they don't own them?

 

You seem to think you are dealing with an honest and reputable company, when most of the evidence suggests otherwise.

But, you should also read the lender registration agreement (not that it appears that legal agreements mean a whole lot to these people...neither borrowers nor Prosper itself).

[msushi]

when these accounts go into collections is there not any grounds for the collection agency to stand on since all of these loans are owned by individuals and never prosper's property in the first place to sell?

is there any place that says that lenders actually do own the loans? what gives prosper the right to take over our loans and do whatever they want with them even though they don't own them?

 

You seem to think you are dealing with an honest and reputable company, when most of the evidence suggests otherwise.

But, you should also read the lender registration agreement (not that it appears that legal agreements mean a whole lot to these people...neither borrowers nor Prosper itself).

it seems like a borrower can just default on their loan and make the case that prosper doesn't even own the debt in the first place so a collection agency has no right to even try to collect on it...  arggg

does anyone know where i can find an older version (circa 2007-08) of the borrower agreement?

[Urbi_et_Orbi]

I know we have a thread here with copies of old lender agreements.  I don't recall seeing a similar thread for borrower agreements.

[striders]

Guys,

Just a quick update: I asked a legal counsel and they recommend that I FILE a DISPUTE with the credit bureau. This WILL force Prosper to update the balance. He said the chances the credit bureau will take side with Prosper is very slim because the credit bureau will know that the information in my credit report is WRONG and they have to fix it by law, and they will do this once Prosper CONFIRMS the CURRENT balance.

I will file a complain with the credit bureau AND BBB.

[Mtnchick]

IIRC, if they report, they must do so with the correct information. IOW, they aren't required to report at all....but since they are reporting (albeit to only 2 bureaus) they are required to have accurate information. I THINK I saw somewhere it had to at least be quarterly?

[Flying Missle]

No one is required to furnish information to CRA (Credit Reporting Agencies) on credit activity, however mtnchick is right. If they do furnish, they must do so acccurately.

Further, because as a Propser borrower you agreed to receive documents electronically, the dispute that you filed with Prosper via e-mail is considered a "Direct Dispute" and Prosper is under obligation (per the 2003 Fair and Accurate Credit Transaction Act (FACTA)) to investigate and respond within 30 days.

They are required to retain the records of the investigation for a "reasonable period" of time, which is not defined. Most banks are keeping those records for the life of the loan, plus 7 years.

Relevant summary of the direct dispute from a trade group. (bolding mine)

Direct Dispute/Investigation

A furnisher is now required to conduct a reasonable investigation if a consumer directly disputes certain information contained in a consumer report. “Direct dispute” means a dispute submitted directly to a furnisher (including a furnisher that is a debt collector) by a consumer concerning the accuracy of any information contained in a consumer report and pertaining to an account or other relationship that the furnisher has or had with the consumer. A furnisher is required to conduct a reasonable investigation if the dispute relates to:

the consumer’s liability for a credit account or other debt with the furnisher, such as direct disputes relating to whether there is or has been identity theft or fraud against the consumer, whether there is individual or joint liability on an account, or whether the consumer is an authorized user of a credit account;
the terms of a credit account or other debt with the furnisher, such as direct disputes relating to the type of account, principal balance, scheduled payment amount on an account, or the amount of the credit limit on an open-end account;
the consumer’s performance or other conduct concerning an account or other relationship with the furnisher, such as direct disputes relating to the current payment status, high balance, date a payment was made, the amount of a payment made, or the date an account was opened or closed; or
any other information contained in a consumer report regarding an account or other relationship with the furnisher that bears on the consumer’s creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living.
These provisions do not apply to a furnisher if the direct dispute relates to:

[SECTION OMITTED]The consumer is required to submit a dispute notice to the furnisher: (i) at the furnisher’s address indicated by the furnisher on the consumer report; (ii) at a location clearly and conspicuously specified by the furnisher for submitting direct disputes provided in writing or electronically (if the consumer has agreed to the electronic delivery of information from the furnisher); or (if not provided as indicated above) at any business address of the furnisher.

The dispute notice must include sufficient information to identify the account or other relationship, the specific information in dispute together with an explanation, and all supporting documentation or other information reasonably required to substantiate the dispute. This may include a copy of the disputed portion of the consumer report, a police report, affidavit, court order; or account statements.

After receiving the notice, the furnisher must conduct a reasonable investigation and review the relevant information provided. The investigation must be completed and reported to the consumer within the same period that a CRA is subject to under its reinvestigation duty (30 days with a possible extra 15 days) [4]. If the investigation results in a finding that the information reported was inaccurate, the furnisher must promptly notify each CRA to which the furnisher provided the information and provide any correction necessary to make the information accurate.A furnisher is not required to investigate a direct dispute if the furnisher has reasonably determined that the dispute is “frivolous or irrelevant.” This exception applies if the consumer did not provide sufficient information to investigate the disputed information, or the furnisher had previously handled the same dispute properly. (A direct dispute is not substantially the same if it includes new information not included in the earlier dispute). These examples are not intended to be exhaustive.

The furnisher must notify the consumer within five business days after making a determination that a dispute is frivolous or irrelevant by mail or (if authorized by the consumer for that purpose) by any other means available to the furnisher. The notice must include the reasons for the determination and identify any information required to investigate the disputed information. It is allowable that the notice consist of a standardized form describing the general nature of such information. The Agencies note that the FTC, when it next updates its General Summary of Consumer Rights, will include consumers’ direct dispute rights in the summary.

[Urbi_et_Orbi]

Is this the same poster - or is this just an indication of a pattern?

http://ficoforums.myfico.com/t5/General-Credit-Topics/How-it-affect-FiCO-score-when-the-financial-institution-STOP/td-p/854490

I have an account with Prosper Marketplace, a peer-to-peer lending community. I have a loan through them since 2008. However, for some reason, starting August 2010, they STOP updating my credit report. I have been contacting them on a monthly basis and they kept on saying they'll update it. Fast forward to 2011, nothing happened.

The end result is that my credit report showed that I owe MORE than the actual amount. I.e. in 08/2010, it shows I owe $1300~, but in actuality is I owe $800~. My loan will be paid off in August 2011 but my questions are:

1). As this moment, how will this affect my FICO score?

2). Beside complaining to Prosper and BBB, is there any other way for me to file a complaint to ensure Prosper update my credit report? My BIGGEST worries is that, comes August 2011 when I paid off the loan, Prosper will STILL NOT UPDATE the record and my credit report (may) forever show I still owe $1300 with Prosper.
....

[Flying Missle]

Is this the same poster - or is this just an indication of a pattern?

http://ficoforums.myfico.com/t5/General-Credit-Topics/How-it-affect-FiCO-score-when-the-financial-institution-STOP/td-p/854490

I have an account with Prosper Marketplace, a peer-to-peer lending community. I have a loan through them since 2008. However, for some reason, starting August 2010, they STOP updating my credit report. I have been contacting them on a monthly basis and they kept on saying they'll update it. Fast forward to 2011, nothing happened.

The end result is that my credit report showed that I owe MORE than the actual amount. I.e. in 08/2010, it shows I owe $1300~, but in actuality is I owe $800~. My loan will be paid off in August 2011 but my questions are:

1). As this moment, how will this affect my FICO score?

2). Beside complaining to Prosper and BBB, is there any other way for me to file a complaint to ensure Prosper update my credit report? My BIGGEST worries is that, comes August 2011 when I paid off the loan, Prosper will STILL NOT UPDATE the record and my credit report (may) forever show I still owe $1300 with Prosper.
....

The writing pattern and grammar have the same "sound" to me. Probably the same person.

[striders]

All,

Prosper finally gotten back to me. Their response is:

Dear xxx,

Thank you for contacting Prosper. Please accept our sincerest apologies for the delayed response. I've reviewed the account history and completely understand your concern and frustration over how your situation has been handled. As the Customer Relations Manager, many of the frustrations you have are a result of items under my purview. Specifically the delayed responses and the fact that the your credit report was not updated in January as we said it would be.

Due to a billing system change last year Prosper has had to transition to a manual credit report updating process. As you might imagine this process takes many man hours to review, audit and update. In your case, to be completely honest, I dropped the ball in January. My team sent you an Email on January 19th that stated we would update your credit report. I reviewed my Email history and I found the Email that was sent which should have been forwarded it on to have you report updated. It was my error and I apologize for that. We are actively working on reimplementing the automated updates so that we do not have to rely on multiple layers of potential human error impacting our customer but I do not have an estimated time as to when that will be completed.

What I can tell you is that we have updated your credit report as it relates to loan xxx per your request. This was done on March 2nd after business hours so I'm not certain how that information transitions to Experian and Trans Union for them to update but I have gotten confirmation that it was done. Some customers that I have updated credit reports for have seen the update in as little as 24 hours while others have had to wait 2-3 business days to see the change. Once again I apologize for any inconvenience that this situation has caused. If you would like to speak to me directly I can be reached by Email at rwafer@prosper.com or by phone at 866-615-6319 or direct dial 415-593-5412.

Sincerely,

xxx
Customer Relations Manager
Prosper Customer Support

[ira01]

Due to a billing system change last year Prosper has had to transition to a manual credit report updating process. As you might imagine this process takes many man hours to review, audit and update.

WTF?  For months, Prosper has had to update credit reports on every loan MANUALLY?  It bears saying again -- WTF?

We are actively working on reimplementing the automated updates so that we do not have to rely on multiple layers of potential human error impacting our customer but I do not have an estimated time as to when that will be completed.

How can that possibly not be done after months (and apparently be so far away from being done that there isn't even an ETA yet)?  

What I can tell you is that we have updated your credit report as it relates to loan xxx per your request.

So in other words, the squeaky wheel gets some grease, while all of the other thousands of wheels are left to seize up.

Some customers that I have updated credit reports for have seen the update in as little as 24 hours while others have had to wait 2-3 business days to see the change.

So in other words, there have been a number of other loans that Prosper's ridiculous manual system missed and that had to be corrected after the borrowers complained.  

I nominate this thread to the Lobby.

[yankeefan]

+1 for lobby

[striders]

For those who is having the same problem as me, I urge you to email support@Prosper.com AND rwafer@prosper.com or by phone at 866-615-6319 or direct dial 415-593-5412.

The more the merrier!

[cowdog]

Due to a billing system change last year...

Sounds like Prosper didn't pay their membership fee.

 

[Urbi_et_Orbi]

I think the response is disturbing in some ways, but I also can't recall seeing anyone at Prosper actually accept responsibility quite like this.

Too bad it's only happening in direct correspondence - and that their public face continues to be so arrogant and tone-deaf.