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[Beerbud1]

These three loans received a principal re-adjustment to make them wholly paid in full loans:

Dec-29-2010 12:55 AM     Dec-29-2010     Deposit     Principal adjustment     15700-47      051056399     Completed     $0.57      $24.10

Dec-29-2010 12:55 AM     Dec-29-2010     Deposit     Principal adjustment     7781-27      051056204     Completed     $0.03      $23.53

Dec-29-2010 12:55 AM     Dec-29-2010     Deposit     Principal adjustment     23641-112   051056330     Completed     $0.51      $23.50

[Staneslav]

a

[Beerbud1]

These three loans received a principal re-adjustment to make them wholly paid in full loans:

Dec-29-2010 12:55 AM     Dec-29-2010     Deposit     Principal adjustment     15700-47      051056399     Completed     $0.57      $24.10

Dec-29-2010 12:55 AM     Dec-29-2010     Deposit     Principal adjustment     7781-27      051056204     Completed     $0.03      $23.53

Dec-29-2010 12:55 AM     Dec-29-2010     Deposit     Principal adjustment     23641-112   051056330     Completed     $0.51      $23.50

Original Principal amounts are shown below:

23641-112

$500.00

7781-27

     $60.00

15700-47

    $55.30

[Shenandoah]

I have 2.  Both look like they made payoffs, which resulted in a few cents balance for some reason, then the adjustment eliminated that balance.

I searched my history for these "Principal Adjustment"s, and none occurred prior to today, so seems like something new.


2367276    Sep-15-2009    Dec-27-2010    Adjust 1    Paid    $0.12    -    -    -    $0.12    $0.00
5105519    Sep-15-2009    Sep-15-2009    Automatic    Paid    $1.79    -    -    $0.03    $1.77    $0.12


2367309    Jun-05-2009    Dec-27-2010    Adjust 1    Paid    $0.11    -    -    -    $0.11    $0.00
4870536    Jun-05-2009    Jun-05-2009    Manual    Paid    $2.38    -    -    $0.01    $2.36    $0.11

[Xenon481]

I also have 3 of these:

https://www.prosper.com/invest/listing.aspx?listingID=119075
2367472    Dec-30-2009    Dec-27-2010    Adjust 1    Paid    $0.16    -    -    -    $0.16    $0.00

https://www.prosper.com/invest/listing.aspx?listingID=39120  (This is VeryBusyMom's loan)
2367277    Nov-16-2009    Dec-27-2010    Adjust 1    Paid    $0.30    -    -    -    $0.30    $0.00

https://www.prosper.com/invest/listing.aspx?listingID=35679  (This is the loan I had that was paid off by a community payment almost a year after it went late)
2367269    Jun-25-2008    Dec-27-2010    Adjust 1    Paid    $1.13    -    -    -    $1.13    $0.00


One thing that these loans all have in common is that they were paid-in-full but had several failed payment attempts.


Edit: Nominating this thread to The Lobby.

[Senator]

second for lobby.  This seems important enough.

I got one which netted me $0.13 in my account:



Recorded (PST)   Transaction
Date   Type   Purpose   Note ID   Transaction
ID   Status   Amount   Cash Balance
Dec-29-2010 12:33 AM    Dec-29-2010    Deposit    Principal adjustment   639-8    051055992    Completed   $0.13   $0.13

https://www.prosper.com/invest/listing.aspx?listingID=7043

[ira01]

I also have 3 of these:

https://www.prosper.com/invest/listing.aspx?listingID=119075
2367472    Dec-30-2009    Dec-27-2010    Adjust 1    Paid    $0.16    -    -    -    $0.16    $0.00

https://www.prosper.com/invest/listing.aspx?listingID=39120  (This is VeryBusyMom's loan)
2367277    Nov-16-2009    Dec-27-2010    Adjust 1    Paid    $0.30    -    -    -    $0.30    $0.00

https://www.prosper.com/invest/listing.aspx?listingID=35679  (This is the loan I had that was paid off by a community payment almost a year after it went late)
2367269    Jun-25-2008    Dec-27-2010    Adjust 1    Paid    $1.13    -    -    -    $1.13    $0.00


One thing that these loans all have in common is that they were paid-in-full but had several failed payment attempts.

So the question is:  Did Prosper screw up the accounting and try to charge borrowers too much, or did Prosper unilaterally decide to forgive money that the borrowers really owed their lenders (most likely interest for the late payments)?  Either way, it doesn't seem good for Prosper.

Edit: Nominating this thread to The Lobby.

+1

[yankeefan]

I also have 3 of these:

https://www.prosper.com/invest/listing.aspx?listingID=119075
2367472    Dec-30-2009    Dec-27-2010    Adjust 1    Paid    $0.16    -    -    -    $0.16    $0.00

https://www.prosper.com/invest/listing.aspx?listingID=39120  (This is VeryBusyMom's loan)
2367277    Nov-16-2009    Dec-27-2010    Adjust 1    Paid    $0.30    -    -    -    $0.30    $0.00

https://www.prosper.com/invest/listing.aspx?listingID=35679  (This is the loan I had that was paid off by a community payment almost a year after it went late)
2367269    Jun-25-2008    Dec-27-2010    Adjust 1    Paid    $1.13    -    -    -    $1.13    $0.00


One thing that these loans all have in common is that they were paid-in-full but had several failed payment attempts.

So the question is:  Did Prosper screw up the accounting and try to charge borrowers too much, or did Prosper unilaterally decide to forgive money that the borrowers really owed their lenders (most likely interest for the late payments)?  Either way, it doesn't seem good for Prosper.

Edit: Nominating this thread to The Lobby.

+1

Prosper actually credited these small amounts to the lenders' accounts.  From their own funds?  I don't know.  I even got an extra $0.15 from Bev's loan!

[Beerbud1]

I'm okay with this thread going to the Lobby if that is what everyone wants.

[Urbi_et_Orbi]

I received 4 principal adjustment payments, including for loans paid off more than TWO years ago.

It's strange to send these payments out without Prosper also explaining WHY it is happening, WHAT was wrong with their internal accounting routines, and HOW something like this could possibly happen.

How can investors have confidence in this system?   

[Fred93]

I've known for a long time that there were a lot of prosper loans that seemed to stop making payments a few dollars (or even cents) away from payoff.  Haven't been able to get an answer from prosper about this, and never spent the time to dig thru the records and figure out what caused it.  I've been assuming it occurs when there were late payments somewhere along the line, which caused less money to go to pay down principal than was anticipated when the loan was created, causing the need for a small 37th payment, which they never bothered to extract from the borrower.  -- but I don't know whether this is right.

I got a bunch of these principal readjustments on 12/27 too.  Perhaps they've now fixed this old bugaboo.

[Nora_Lenderbee]

I got one, too--for 9 cents. On Rowangray's loan.
https://www.prosper.com/invest/listing.aspx?listingID=222083

[Mtnchick]

Sounds like it's pretty much figured out. The borrower thinks the loan is paid off because they made 36 payments od $X. But they were late a few times and interest on the balance kicked in but it was miniscule. Prosper has let these tint balances sit there and probably haven't even sent a statement of due to the borrower so they don't even know about it. Now this late in the game they are eating the balance and crediting it to the lenders since it IS our money.

I'd be really interested if these balances were showing up on credit reports. Remember, Prosper didn't report for about a year until recently. Maybe some irate borrowers weren't to please about being dunned when they hadn't been told of the balance.

[Senator]

... causing the need for a small 37th payment, which they never bothered to extract from the borrower.  -- but I don't know whether this is right.

Wasn't the 36th payment supposed to be a balloon payment (a little higher than normal) that included a little extra to cover the extra interest and late fees on those late payments?

[ira01]

... causing the need for a small 37th payment, which they never bothered to extract from the borrower.  -- but I don't know whether this is right.

Wasn't the 36th payment supposed to be a balloon payment (a little higher than normal) that included a little extra to cover the extra interest and late fees on those late payments?

\

Yes.  But given Prosper's usual diligence and competence, they probably just took the usual amount as #36, rather than the correct amount.