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[Cushie]

http://www.usatoday.com/money/perfi/credit/2007-12-25-peerlending-pers_N.htm

http://www.usatoday.com/money/perfi/credit/2007-12-25-peerlending-min_N.htm

I haven't read either yet so they could be one and the same or two different articles.

[NewHorizon]

"We think it defeats the purpose if you have to know people" to borrow and lend money, says Chris Larsen, Prosper's CEO. "It's kind of like on eBay. If you can only sell products to family and friends, we think that doesn't lead to the best prices."

Umm, so what about islandmele's group?

[Cushie]

"We think it defeats the purpose if you have to know people" to borrow and lend money, says Chris Larsen, Prosper's CEO. "It's kind of like on eBay. If you can only sell products to family and friends, we think that doesn't lead to the best prices."

Umm, so what about islandmele's group?

Or Prosper's original intentions and marketing?  Yeah...

[Xenon481]

Default rates are lower for peer-to-peer loans than for other consumer loans. Cory Moore became a lender on Prosper.com this year.

Just more fluff..... And revelation of PII!! 

[112233]

Default rates are lower for peer-to-peer loans than for other consumer loans. Cory Moore became a lender on Prosper.com this year.

Just more fluff..... And revelation of PII!! 

How do these reporters get PII? Is prosper providing this information or turning a blind eye when they ask for it from borrowers via PMs?

How fast to do you think I would be slapped down by PMI if I started sending PMs to borrowers asking for their PII so I can post news articles on prosperreport.com?

[NewHorizon]

How do these reporters get PII? Is prosper providing this information or turning a blind eye when they ask for it from borrowers via PMs?

I thought Prosper contacts the lender and asks, "Can this reporter contact you?"  After that, the lender and reporter agree on what gets revealed.

[leporello]

FWIW, I just e-mailed the author this note at kchu@usatoday.com:

Dear Ms. Chu,

I just read with great interest your article "Peer-to-peer lending hits its stride" in USA Today, and would welcome the opportunity to speak with you or communicate by e-mail regarding Prosper Marketplace, Inc., one of the P2P lending sites mentioned in your article. I have loaned well over $100,000 on Prosper and am very familiar with the company, its executives, its business practices, its strengths, and especially its flaws. Many articles have been written about P2P lending, and about Prosper in particular, but none has done anything more than barely scratch the surface. I would very much like to contribute to a serious in-depth investigative article about Prosper Marketplace, and will be delighted to refer you to a dozen other well-informed, articulate, and experienced customers of the company, should you be so interested. Should you be interested, I would urge you to visit the site prospers.org, where many Prosper customers congregate to exchange thoughts about the company.

Many thanks in advance for your time and interest. I hope to hear from you in the near future.

Happy Holidays!

xxxxxxxxxxx

[HollowOak]

"We think it defeats the purpose if you have to know people" to borrow and lend money, says Chris Larsen, Prosper's CEO. "It's kind of like on eBay. If you can only sell products to family and friends, we think that doesn't lead to the best prices."

Umm, so what about islandmele's group?

LMAO. 180 degrees reversal from Fireman Joe?

[Tokyo Joe]

"We think it defeats the purpose if you have to know people" to borrow and lend money, says Chris Larsen, Prosper's CEO. "It's kind of like on eBay. If you can only sell products to family and friends, we think that doesn't lead to the best prices."

Umm, so what about islandmele's group?

LMAO. 180 degrees reversal from Fireman Joe?

I wonder if Fireman Joe is still current...

[ira01]

http://www.usatoday.com/money/perfi/credit/2007-12-25-peerlending-pers_N.htm

http://www.usatoday.com/money/perfi/credit/2007-12-25-peerlending-min_N.htm

I haven't read either yet so they could be one and the same or two different articles.

The first one is geared towards borrowing, and the second one towards lending. 

I am so sick and tired of these lazy ass reporters that print drivel without any attempt to provide balance (or even common sense).  Check out this nonsense from the second article:

Default rates are lower for peer-to-peer loans than for other consumer loans. Cory Moore became a lender on Prosper.com this year. To hedge against defaults, he spreads his risk by lending small sums to different borrowers. So far, he's made 170 loans, for $50 apiece.

"If one defaults, I've lost (money for) a dinner for two," says Moore, who says he's collected about $4,000 in interest from the loans. "Each loan is only $50, so I'm not worried."

This doesn't come close to making sense even on a cursory level.  Moore, who became a lender this year, has 170 loans @ $50, which equals $8,500.  Yet he claims he's collected $4,000 in interest already???    That's a pretty nifty trick, collecting almost 50% interest in less than one year, considering that Prosper's maximum annual interest rate was about half that until recently.  Just unbelievable.

[nonattender]

"We think it defeats the purpose if you have to know people" to borrow and lend money, says Chris Larsen, Prosper's CEO. "It's kind of like on eBay. If you can only sell products to family and friends, we think that doesn't lead to the best prices."

It's ringing again... damned Skype phone.

-t

[beerbud1]

http://www.usatoday.com/money/perfi/credit/2007-12-25-peerlending-pers_N.htm

http://www.usatoday.com/money/perfi/credit/2007-12-25-peerlending-min_N.htm

I haven't read either yet so they could be one and the same or two different articles.

The first one is geared towards borrowing, and the second one towards lending. 

I am so sick and tired of these lazy ass reporters that print drivel without any attempt to provide balance (or even common sense).  Check out this nonsense from the second article:

Default rates are lower for peer-to-peer loans than for other consumer loans. Cory Moore became a lender on Prosper.com this year. To hedge against defaults, he spreads his risk by lending small sums to different borrowers. So far, he's made 170 loans, for $50 apiece.

"If one defaults, I've lost (money for) a dinner for two," says Moore, who says he's collected about $4,000 in interest from the loans. "Each loan is only $50, so I'm not worried."

This doesn't come close to making sense even on a cursory level.  Moore, who became a lender this year, has 170 loans @ $50, which equals $8,500.  Yet he claims he's collected $4,000 in interest already???    That's a pretty nifty trick, collecting almost 50% interest in less than one year, considering that Prosper's maximum annual interest rate was about half that until recently.  Just unbelievable.

what a lier! There's no way he has collected that much in interest. I've invested over $75,000 and have gotten $6400.

[ira01]

http://www.usatoday.com/money/perfi/credit/2007-12-25-peerlending-pers_N.htm

http://www.usatoday.com/money/perfi/credit/2007-12-25-peerlending-min_N.htm

I haven't read either yet so they could be one and the same or two different articles.

The first one is geared towards borrowing, and the second one towards lending. 

I am so sick and tired of these lazy ass reporters that print drivel without any attempt to provide balance (or even common sense).  Check out this nonsense from the second article:

Default rates are lower for peer-to-peer loans than for other consumer loans. Cory Moore became a lender on Prosper.com this year. To hedge against defaults, he spreads his risk by lending small sums to different borrowers. So far, he's made 170 loans, for $50 apiece.

"If one defaults, I've lost (money for) a dinner for two," says Moore, who says he's collected about $4,000 in interest from the loans. "Each loan is only $50, so I'm not worried."

This doesn't come close to making sense even on a cursory level.  Moore, who became a lender this year, has 170 loans @ $50, which equals $8,500.  Yet he claims he's collected $4,000 in interest already???    That's a pretty nifty trick, collecting almost 50% interest in less than one year, considering that Prosper's maximum annual interest rate was about half that until recently.  Just unbelievable.

what a lier! There's no way he has collected that much in interest. I've invested over $75,000 and have gotten $6400.

As I see it, there are 4 possibilities:  (1) Cory is a liar (and maybe a Prosper employee or other shill); (2) Cory does not understand how he is really doing on Prosper; (3) the reporter made up Cory; (4) the reporter did not understand what Cory told her, and/or what she wrote was screwed up during editing.  Regardless, the fact that this made it into U.S.A. Today is simply unbelievable.

[Tokyo Joe]

USA should be told to make a correction, if the stats are impossible.

Maybe they might even start poking around more?

[Mark12547]

As I see it, there are 4 possibilities: ... (4) the reporter did not understand what Cory told her, and/or what she wrote was screwed up during editing.

Actually, I have been misquoted often enough, especially when dealing with financial matters, that I would put my vote on #4. Something as simple as stating one had received $4,000 in payments could be quoted as saying $4,000 in interest. If you read the old issue of PLANSPONSOR where I am quoted about Savings Bonds, the author totally messes up that information and those who know how they work would think I am a complete idiot.

More often than not, when a story is published and I have direct knowledge of the event, there is at least one factual error; as the information gets further outside of the reporter's field of expertise, the factual errors tend to increase.