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[Loan_shark_74]

To improve the experience for our customers, we will be eliminating the auction process on December 19th. You may post a listing prior to that date, however you must use the starting interest rate shown below. Once you do so, the auction will remain in effect for your listing and lenders will be able to bid down your rate until December 19th. If your listing is 100% funded on that date, your listing period will end and your loan can fund. If your listing is not 100% funded on December 19th, it will remain active until it is fully funded or the 7 day listing period expires, whichever comes first, but lenders will no longer be able to bid down your rate.

[pioneer11]

I thought you were joking until I checked it myself.

[DCS]

Apparently Lendingclub picked the winning P2P loan application model.  It's a shame, I thought the auction was fun.

[Xenon481]

Wow!

In order to find that message, I had to start creating a borrower listing up to the point that they did a soft pull on my credit report.

And then what I found was that the borrower can't set their starting rate anymore at all! Prosper decides what your rate will be. Period.

And it doesn't appear that the interest rate is in any way related to the size of the loan request. A $1,000 loan gets the same interest rate as a $15,000 loan.

And the APR is RIDICULOUS! There is no way that I would accept a $1,000 loan at 8.34% APR when I have a (per Prosper) 800-819 credit score and the highest Prosper score possible (10).

[Xenon481]

This complete and utter change in the way Prosper works belongs in The Lobby!

[pioneer11]

And the APR is RIDICULOUS! There is no way that I would accept a $1,000 loan at 8.34% APR when I have a (per Prosper) 800-819 credit score and the highest Prosper score possible (10).

They have priced the good risks out of their market.

[Loan_shark_74]

This complete and utter change in the way Prosper works belongs in The Lobby!

I looked in the lobby to see if anyone else had seen this. Lobby worthy.

IMO, this marks the end of Prosper.

[Loan_shark_74]

And the APR is RIDICULOUS! There is no way that I would accept a $1,000 loan at 8.34% APR when I have a (per Prosper) 800-819 credit score and the highest Prosper score possible (10).

They have priced the good risks out of their market.

Exactly the way I see it.

A borrower will not list if the "posper rate" is higher than what they are getting elsewhere. Previously, you could at least hope for a bid down.
Now the only borrowers to come will be those who can get a better rate, are using Prosper as a last resort, or are not planning on paying back the loan.

Lenders will dwindle, because the intelligent ones will realize this and stop lending.

[big-al]

And it doesn't appear that the interest rate is in any way related to the size of the loan request. A $1,000 loan gets the same interest rate as a $15,000 loan.

My rate varies based on loan amount.

But...

Based on your credit scores, you are eligible for a maximum loan amount of $7,500.

They report my score as 800-819.

[Xenon481]

And it doesn't appear that the interest rate is in any way related to the size of the loan request. A $1,000 loan gets the same interest rate as a $15,000 loan.

My rate varies based on loan amount.

I tried numerous amounts from $1,000 to $25,000 and the 3 year rate was always exactly the same.

But...

Based on your credit scores, you are eligible for a maximum loan amount of $7,500.

They report my score as 800-819.

What is your Prosper Score, though?

[xraider]

This complete and utter change in the way Prosper works belongs in The Lobby!

Second for lobby.  This is an important change.  While it may protect lenders' returns, it will discourage the borrowers who could get better rates elsewhere.  

What rates did you guys get?

ETA:

Borrowers' page still says:

Borrowers with good credit (640+) post a loan listing and lenders invest $25 or more towards your loan. Your rate may get bid down in our auction process.

[TotoMMB]

Absolutely important news, and I can't find it anywhere on the website. I refused to give up before...now, I'm officially done.

Prosper...shutting it's doors, early 2011.

[big-al]

And it doesn't appear that the interest rate is in any way related to the size of the loan request. A $1,000 loan gets the same interest rate as a $15,000 loan.

My rate varies based on loan amount.

I tried numerous amounts from $1,000 to $25,000 and the 3 year rate was always exactly the same.

But...

Based on your credit scores, you are eligible for a maximum loan amount of $7,500.

They report my score as 800-819.

What is your Prosper Score, though?

$1k:  B/8
$7.5k:  C/7
I understand that the Prosper Score is a proprietary credit score, but when the profile lists "Credit score", "Prosper Rating", and "Prosper score", which will the reasonable borrower think they're talking about?  Just more careless and confusing wording.

[Urbi_et_Orbi]

Haven't they been touting the auction model as why they think Prosper is superior to LendingClub?

[ira01]

Haven't they been touting the auction model as why they think Prosper is superior to LendingClub?

If you can't beat 'em . . . .