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[loanuniverse]

I think that payments will be made on Net Chargeoffs. You will have to deduct any recoveries from the chargeoffs. I had close to $1,000 in charge offs but recoveries trickled in every year. So my guess is net chargeoffs are about $900-$950.

The attachment to the email said $208 for every $1,000 would be the net payment. So the percentage is more 21% than 22%.

[Capital_Finance_Group]

Received my notice at 4:19am this morning (1/25/2014) via email.

[Oak_Hill_Fire]

I still haven't received any notice, of any type though I appear to be a class member. I wonder how they're going about issuing notice.

[Beerbud1]

I still haven't received any notice, of any type though I appear to be a class member. I wonder how they're going about issuing notice.

It is e-mail. I'm quite sure their sending the e-mails out in Batch's based on alphabetical order. I got mine yesterday right around the same time several other folks got theirs. then other's reported getting it later in the day. I come pretty early in the alphabet.

IMHO

[TJGbank]

My notice came at 7:00 this morning.

[xraider]

Aren't I missed? 

Fred, I was interested in seeing what windfall I'd get from Prosper so went to my account.  First thing I did was transfer out the $47 sitting there.

Second thing I did was add up the defaults where I suffered a loss.  Many of my defaults had actually paid back more than the principal on the loans, so I'm owed roughly $300.  Woo hoo.  I'll go to dinner in three years or something.

Third thing I did was check on my Chapter 13, which Prosper has been paying off at a rate of $.75/mo.  Sure enough, no payments since July. 

This company will never change.

[mothandrust]

Okay, 22% of what exactly?

So let's say I have two loans.

On loan #1, the borrower owes me $10 in unpaid principal, and which gets charged off.

On loan #2, the borrower owes me $100 in unpaid principal, and makes $115 in recovery payments.  Prosper designates $15 as interest and $100 in principal.  The collection fees are $31 (27% of $115), so $84 actually winds up credited to me.  Nevertheless, Prosper declares the loan PIF and I get nothing more.

Do I get:

(a) $2.20  (22% of $10 from loan #1 and nothing from loan #2).

(b) $5.72  (22% of $10 from loan #1 + 22% of (100-84) from loan #2).

(c) A bill for $1.10 (Since $110 was charged-off but I got $115 in recovery payments.  Net charge-offs are negative, and 22% of -$5 is -$1.10.)

(d) Something else?

[Fred93]

I doubt that prosper would do a complex calculation.  Therefore I presumed the number to use is the number shown on the prosper account overview/view details page labelled "principal chargeoffs".

I suppose there is the possibility of them netting recoveries against this somehow.

[Beerbud1]

I doubt that prosper would do a complex calculation.  Therefore I presumed the number to use is the number shown on the prosper account overview/view details page labelled "principal chargeoffs".

I suppose there is the possibility of them netting recoveries against this somehow.

I would have to agree with you Fred. They(Prosper or  the settlement Administrator) are not going to hire a mathmatician to develop a complex formula to redistribute the monies after expenses and the attornies cut. It will be simple and concise. 

[Fred93]

Well...

The Net Settlement Fund shall be distributed to all eligible Class Members (“Eligible Recipients”) in proportion that their losses from defaulted notes bear to the total losses of all Class Members from defaulted notes, according to the “Plan of Allocation,” described below.  An Eligible Recipient means a Member of the Class who purchased one or more Notes sold by Prosper during the Class Period (“Class Period Notes”), and who incurred a financial loss as a result of at least one note defaulting during the Class Period. Thus, a purchaser of at least one Class Period Note is an Eligible Recipient if he or she paid more money to purchase a note than he or she received in principal and interest on that note.

Ok, that's a bit muddled, but it does seem to say simple out minus in, in other words, it doesn't appear to consider the difference between interest and principal.  Therefore, one has to look to see how much interest he received on defaulted notes and subtract that from the "principal chargoffs".  The interest received on defaulted notes is not summed anywhere on the prosper web site, so I'd have to do a spreadsheet?  For my 212 defaulted notes?  Holy heck.  And then probably I'm supposed to subtract the amounts recovered after chargeoff.  (for me I think they're small tho.)  That sounds like a lot of work.  One can go to the "notes" page, filter by "chargeoff" and then I get 5 pages of numbers.  I'd have to copy & paste to a spreadsheet.  

Just glancing down the list, I see "net recd" is often more than half of the amount loaned.  In several cases it is more than the amount loaned, even tho the loan defaulted, because a lot of interest got paid in the first year or so.

And then those badly worded words "their losses from defaulted notes"... Does that mean sum for each defaulted loan, or each defaulted loan where the principal loss exceeds the "net recd"?  In other words, do my so-called profitable defaults reduce my settlement amount?  How can a court clerk draft such ambiguous language?  Did he never take a math class?  Can't he write an equation?

I might just wait 'til the check arrives.

[ira01]

How can a court clerk draft such ambiguous language?  Did he never take a math class?  Can't he write an equation?

The court clerk had nothing to do with it.  The settlement notice was almost certainly drafted by the attorneys (probably Prosper's attorneys with input from Plaintiffs' attorneys, although could have been the other way around). 

[Fred93]

The court clerk had nothing to do with it.  The settlement notice was almost certainly drafted by the attorneys (probably Prosper's attorneys with input from Plaintiffs' attorneys, although could have been the other way around). 

I'm sure you're right .. it was a SETTLEMENT after all.

[aussie]

Got my email. I had checked earlier today and saw nothing so I looked in junk and there it was.

[Capital_Finance_Group]

According to the notice it appears we can expect $208 per $1000 of losses on defaulted notes.
I assume that losses on defaulted notes is approximately the same as "charge offs"

I had $428 in chargeoffs - I am thinking I will get $89.
I plan to cash my checks but not spend much more time on this than necessary.

[loanuniverse]

According to the notice it appears we can expect $208 per $1000 of losses on defaulted notes.
I assume that losses on defaulted notes is approximately the same as "charge offs"

I had $428 in chargeoffs - I am thinking I will get $89.
I plan to cash my checks but not spend much more time on this than necessary.

That is what I thought originally, but a couple of paragraphs earlier they say that they define losses as "(calculated as the difference between the face value of all defaulted notes

for that Eligible Recipient and the sum of interest and principal payments received on those notes by that Eligible Recipient)"

I think the key here is that they are going to deduct interest that you received from your losses also, which in some cases might reduce or eliminate the chargeoff for a particular loan completely. Personally, I am not going to do the math, but I expect that my estimate of $900-$950 of net chargeoffs will be cut in half or more.