Here is response I recieved from Kathy Chu:
Hi David -
I just checked with Cory and he says that he has indeed made ''about'' $4,000 in interest -- it's because most but not all of his loans are for $50 apiece… in addition to the loans at $50 apiece, he has a few other loans for $5,000 and $8,000. On all of his loans, he charges a minimum of 12%, but some are at 29%.
Does that make sense?
Kathy Chu
Reporter
USA TODAY
My original e-mail to her:
--------------------------------------------------------------------------------
From: dfbooth1@comcast.net [mailto:dfbooth1@comcast.net]
Sent: Wednesday, December 26, 2007 2:17 PM
To: Chu, Kathy
Subject: Peer-to-peer lending hits its stride - USATODAY.com
Your article mentions that Cory Moore has recieved over $4000 in interest this year on 170 loans @ $50.00 per loan. That would mean that he loaned a total of $8500.00.
That would mean that the interest rate is well over 50% in order to achieve that rate of return. As a prosper lender I know for a fact that there is no interest on Prosper over 30%. YTou need to print a retraction as this is false and misleading.
yours Truly
David
Pompano Beach, FL
My followup e-mail to her today:
Kathy,
Yes it does. There was never any mention of the larger loans on Prosper. Thank you for responding back to me personally. I would like to personally invite you to check out
www.prospers.org. It is a forum for anyone that is involved in Prosper as well as the other P2P lending websites. You can learn alot about Prosper, its lenders and their experiences by visiting this site. Anyone of several lenders would be interested in talking with you about their lending experiences, good and bad for a follow up piece. If I can assist you, don't hesitate to e-mail me.
David
Beerbud1(screen name)