Make the December sale, as promised and not make their numbers look even worse than they already do. They managed to accomplish that by not selling all the "old" loans. How long have the "New Agency" loans been assigned? If it's more than a month, then they should have been included in the sale. If a borrower was contacted by Pencro for months, then the "New Agency" it's a pipedream to think they are suddenly going to pay up after a month of contact.
As was stated above about the "New Agency" being a law firm, there is something everybody should know:
IIRC, these borrowers are all California residents, which means there is no question that California law (and therefore California courts) have proper jurisdiction. I know for a fact that lawsuits in California cannot be filed overnight.
Actually, yes they can. You crank up a form complaint and summons out of your computer (which takes about 10 minutes to put in the defendant's name, the amount of the debt, and other similar info), and you have a messenger file it at the courthouse (which takes about 30 minutes).
First, you must make a formal demand for payment,
Nope. From the
Prommissory Note:
10. Waivers. You may accept late payments or partial payments, even though marked "paid in full," without losing any rights under this Note, and you may delay enforcing any of your rights under this Note without losing them. You do not have to (a) demand payment of amounts due (known as "presentment"), (b) give notice that amounts due have not been paid (known as "notice of dishonor"), or (c) obtain an official certification of nonpayment (known as "protest"). I hereby waive presentment, notice of dishonor and protest. Even if, at a time when I am in default, you do not require me to pay immediately in full as described above, you will still have the right to do so if I am in default at a later time. Neither your failure to exercise any of your rights, nor your delay in enforcing or exercising any of your rights, will waive those rights. Furthermore, if you waive any right under this Note on one occasion, that waiver will not operate as a waiver as to any other occasion.
second, you must serve the papers and wait for a trial date.
That is a different issue from whether lawsuits in California can be "filed overnight." Yes, once suit is filed, the defendant must be served. Big deal. Prosper supposedly verified the borrower's address, so that shouldn't be too difficult. Even if they have since moved, it usually isn't too difficult to find out where people live and/or work these days (you would be amazed what info is available in Lexis/Nexis databases). And there are alternatives to personal service, such as delivering a copy to the person't home and leaving it with an adult there and mailing a copy first class. I'm not an expert in service, because there are countless attorney services that perform this function expertly and inexpensively.
As for waiting for a trial date, it is highly unlikely any of these cases will require a trial. In most cases, the defendant probably won't bother to file an answer, and Prosper will obtain a default judgment relatively quickly. Even if the borrower does file an answer, what is he going to say - that wasn't me who entered all my personal information, received the address verification postcard at my home, received the verification call on my telephone number and took the money that Prosper deposited into my checking account, yet I never claimed ID theft before when Penncro kept calling me because I didn't feel like it???
(I do not know if a borrower can receive a default judgement if he fails to file a formal answer. The formal answer is a procedural thing in a special type of limited civil action, which is the type of action that will apply in most cases.)
If the borrower fails to file an answer within the statutory time period (which I believe is 30 days in California state court), Prosper can then seek a default judgment. That requires filing a few court documents and some evidence of the debt, and no participation by the borrower is then needed. At the end of that process, Prosper will wind up with a default judgment, which it can then use like any other judgment -- to garnish wages, levy on bank accounts, do a till tap if the debtor has a business, etc.
