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[HollowOak]

To all concerned. I'm temporarily locking this thread pending discussions. For the time being the disputed material will be removed. Please discuss any further copyright issues regarding the material in this thread in this thread instead. Thank you for your understanding.

We'll return things to normal as soon as I have clarity and have conferred with Ferrix. Ultimately the risk of carrying disputed material on this site is his.

ETA: There doesn't seem to be validity to the copyright claims. Further discussion regarding the copyright issue should be in the above-referenced thread.

I'm unlocking this thread to permit further discussion of the implications of the letter Prosper issued. If the topic goes off-topic, I'll lock it permanently.

[ks6328]

Here is the first of the two emails sent to me, the wrong with the incorrect percentage.  All I've done to it is Xed out my name.  The lender-specific dollars amount are unchanged.

Subject: Important Message from Prosper: Legal Collections Test

Important Announcement   

 
 
Sent to XXXXXXXXXX registered as ks6328. Change preferences. Learn about security.

XXXXXXXXXX,

The purpose of this email is to inform you of your right to choose what action you would like to take with regard to the accounts of the legal collection test currently underway.

Of the original 74 loans in the legal test, 68 remain (6 loans have fallen out due to such things as curing or bankruptcy filings). In order to present the strongest case, our law firm believes that it is best for Prosper to be the official owner of the loan when suit is filed. As such, we have developed the following process to accomplish this:

You currently hold promissory notes on 2 loan(s) in the test group (loan numbers comprising the test group listed in Exhibit 1). As of January 15th, 2008, the total Gross Amount Due to you on these loans is $160.60. If the loans had been sold in the December debt sale, they would have brought you $13.76 in proceeds.

The total of the 68 loans has a gross amount due of $735,709.66 and would have sold for $73,506.03. Additional loans may be removed from the pool, for such reasons as curing or declaring bankruptcy prior to 1/23/08 the projected pool creation date.

You may choose to accept the $13.76 (the debt sale amount ) for your loans now or to receive a pro-rata share of the net recoveries of this legal test pool. The pro-rata share would be based on the gross amount due on your Notes divided by the gross amount due to all lenders who choose to be in the test, calculated as of January 23, 2008 (the Pool Commencement Date ), i.e., the date after which lenders must respond to this notification indicate whether they wish to participate in the test on a pro-rata basis. Based on the gross amounts due as of $160.60 if all lenders chose to remain in the test, your share would be 2.1830%.

The above share percentage is based on the 68 loans currently identified. Loans could be removed from the pool (due to cure payments, bankruptcies, etc.) prior to the Pool Commencement Date, in which case your percentage may be higher or lower.

The costs that will need to be recovered are: the purchase price that Prosper pays for the loan portions of lenders who do not want to continue with the test, court and service of process costs and the attorney firm s contingency fee (which is 24%).

If you choose to accept your pro-rata share of the net recoveries of the legal test pool, net recoveries (if any) will be credited to your account monthly, for as long as there are loans remaining in legal collection. Due to the unpredictability of litigation, we do not know how long the test will take before legal collection efforts and activities are concluded on all loans in the test; however, we estimate that the test could continue for up to 18 to 24 months.

Since this is a test, we have not yet designed the system to track these revenues within the normal statement process. As such, the loans will be defaulted at zero value and the accounting provided on a monthly basis in a supplementary statement.

Please reply to this email by placing an "X" in the box below that signifies your choice on or before Tuesday 01/22/08. If we do not receive your reply by that date, we will assume that you do NOT wish to participate in this test. As such, we will transfer $13.76 into your account.

If you choose to participate in the test, we will send you a statement confirming your pro-rata share once the responses are tallied and final loan composition is set.

IF YOU CHOOSE TO ACCEPT YOUR PRO-RATA SHARE OF THE NET RECOVERIES OF THE LEGAL TEST POOL, THERE IS NO GUARANTEE THAT YOU WILL RECEIVE AN AMOUNT EQUAL TO OR GREATER THAN THE DEBT SALE AMOUNT, AND THERE IS NO GUARANTEE THAT YOU WILL RECEIVE ANY AMOUNT AT ALL. This is because legal costs and fees are deducted from recoveries before amounts are distributed to lenders, and therefore if costs and fees exceed recoveries, there will be nothing left to distribute to the lenders. If costs and fees exceed recoveries, you will not, however, have to make any out-of-pocket payments to make up the difference.

This test is designed to determine whether the viable threat of legal consequences will improve the repayment statistics for Prosper loans. This test is an important step in creating that awareness of consequences. Please consider your choice carefully.

Prosper Marketplace, Inc.

Please reply to this email by placing an X in one of the following:

[   ] I do NOT wish to participate in this test. In exchange for a purchase price of $13.76, I assign all promissory notes currently held by me associated with the loans listed in Exhibit 1 to Prosper Marketplace, Inc.

[   ] I wish to participate in this test. In exchange for a pro-rata share of at least 2.1830% of the future net recoveries of this test, I assign all promissory notes currently held by me associated with the loans listed in Exhibit 1 to Prosper Marketplace, Inc.

You must reply to this email by on or before Tuesday 01/22/08. If we do not receive your reply by that date, we will assume that you do NOT wish to participate in this test. Thank you.

Exhibit One: Loans Currently In Legal Test Pool

LoanID

LoanID

LoanID

LoanId

848

3918

6127

7739

950

3992

6302

7779

1840

4001

6311

8068

1850

4371

6383

8167

1906

4389

6759

8204

1975

4539

6809

9392

1984

4620

6880

9471

2297

4720

7008

9544

2407

4764

7186

12474

2576

4875

7250

12577

2627

5092

7270

12748

2854

5350

7348

12876

2982

5370

7385

13632

3059

5420

7458

13650

3069

5555

7501

14577

3584

5923

7627

14865

3897

6069

7673

16136

Thank you,

Prosper Operations

CONFIDENTIALITY STATEMENT: This email message, together with all attachments, is intended only for the individual or entity to which it is addressed and may contain legally privileged or confidential information. Any dissemination, distribution or copying of this communication by persons or entities other than the intended recipient, is strictly prohibited, and may be unlawful. If you have received this communication in error please contact the sender immediately and delete the transmitted material and all copies from your system, or if received in hard copy format, return the material to us via the United States Postal Service. Thank you.

 
 
ABOUT PROSPER ABOUT LENDING ABOUT BORROWING PRIVACY
Copyright © 2005-2008 Prosper Marketplace, Inc. All rights reserved.
This message was sent from Prosper based on your communication preferences. Change your preferences.


If you no longer wish to receive these emails, please reply to this message with "Unsubscribe" in the subject line or simply click on the following link: Unsubscribe

Prosper Marketplace Inc.111 Sutter St., 22nd FloorSan Francisco, California 94104

[ks6328]

Here is the second of the two emails sent to me, with the percentage fixed.  All I've done to it is Xed out my name.  The lender-specific dollars amount are unchanged.

Subject: Important Correction from Prosper Re: Legal Collections Test

Important Announcement   

 
 
Sent to XXXXXXXXXX registered as ks6328. Change preferences. Learn about security.

XXXXXXXXXX,

PLEASE DISREGARD THE PREVIOUS EMAIL YOU MAY HAVE RECEIVED REGARDING THE LEGAL COLLECTIONS TEST. THE PERCENTAGES WERE INCORRECTLY FORMATTED. THE CORRECT VERSION IS BELOW. THANK YOU.

The purpose of this email is to inform you of your right to choose what action you would like to take with regard to the accounts of the legal collection test currently underway.

Of the original 74 loans in the legal test, 68 remain (6 loans have fallen out due to such things as curing or bankruptcy filings). In order to present the strongest case, our law firm believes that it is best for Prosper to be the official owner of the loan when suit is filed. As such, we have developed the following process to accomplish this:

You currently hold promissory notes on 2 loan(s) in the test group (loan numbers comprising the test group listed in Exhibit 1). As of January 15th, 2008, the total Gross Amount Due to you on these loans is $160.60. If the loans had been sold in the December debt sale, they would have brought you $13.76 in proceeds.

The total of the 68 loans has a gross amount due of $735,709.66 and would have sold for $73,506.03. Additional loans may be removed from the pool, for such reasons as curing or declaring bankruptcy prior to 1/23/08 the projected pool creation date.

You may choose to accept the $13.76 (the debt sale amount ) for your loans now or to receive a pro-rata share of the net recoveries of this legal test pool. The pro-rata share would be based on the gross amount due on your Notes divided by the gross amount due to all lenders who choose to be in the test, calculated as of January 23, 2008 (the Pool Commencement Date ), i.e., the date after which lenders must respond to this notification indicate whether they wish to participate in the test on a pro-rata basis. Based on the gross amounts due as of $160.60 if all lenders chose to remain in the test, your share would be 0.0218%.

The above share percentage is based on the 68 loans currently identified. Loans could be removed from the pool (due to cure payments, bankruptcies, etc.) prior to the Pool Commencement Date, in which case your percentage may be higher or lower.

The costs that will need to be recovered are: the purchase price that Prosper pays for the loan portions of lenders who do not want to continue with the test, court and service of process costs and the attorney firm s contingency fee (which is 24%).

If you choose to accept your pro-rata share of the net recoveries of the legal test pool, net recoveries (if any) will be credited to your account monthly, for as long as there are loans remaining in legal collection. Due to the unpredictability of litigation, we do not know how long the test will take before legal collection efforts and activities are concluded on all loans in the test; however, we estimate that the test could continue for up to 18 to 24 months.

Since this is a test, we have not yet designed the system to track these revenues within the normal statement process. As such, the loans will be defaulted at zero value and the accounting provided on a monthly basis in a supplementary statement.

Please reply to this email by placing an "X" in the box below that signifies your choice on or before Tuesday 01/22/08. If we do not receive your reply by that date, we will assume that you do NOT wish to participate in this test. As such, we will transfer $13.76 into your account.

If you choose to participate in the test, we will send you a statement confirming your pro-rata share once the responses are tallied and final loan composition is set.

IF YOU CHOOSE TO ACCEPT YOUR PRO-RATA SHARE OF THE NET RECOVERIES OF THE LEGAL TEST POOL, THERE IS NO GUARANTEE THAT YOU WILL RECEIVE AN AMOUNT EQUAL TO OR GREATER THAN THE DEBT SALE AMOUNT, AND THERE IS NO GUARANTEE THAT YOU WILL RECEIVE ANY AMOUNT AT ALL. This is because legal costs and fees are deducted from recoveries before amounts are distributed to lenders, and therefore if costs and fees exceed recoveries, there will be nothing left to distribute to the lenders. If costs and fees exceed recoveries, you will not, however, have to make any out-of-pocket payments to make up the difference.

This test is designed to determine whether the viable threat of legal consequences will improve the repayment statistics for Prosper loans. This test is an important step in creating that awareness of consequences. Please consider your choice carefully.

Prosper Marketplace, Inc.

Please reply to this email by placing an X in one of the following:

[   ] I do NOT wish to participate in this test. In exchange for a purchase price of $13.76, I assign all promissory notes currently held by me associated with the loans listed in Exhibit 1 to Prosper Marketplace, Inc.

[   ] I wish to participate in this test. In exchange for a pro-rata share of at least 0.0218% of the future net recoveries of this test, I assign all promissory notes currently held by me associated with the loans listed in Exhibit 1 to Prosper Marketplace, Inc.

You must reply to this email by on or before Tuesday 01/22/08. If we do not receive your reply by that date, we will assume that you do NOT wish to participate in this test. Thank you.

Exhibit One: Loans Currently In Legal Test Pool

LoanID

LoanID

LoanID

LoanId

848

3918

6127

7739

950

3992

6302

7779

1840

4001

6311

8068

1850

4371

6383

8167

1906

4389

6759

8204

1975

4539

6809

9392

1984

4620

6880

9471

2297

4720

7008

9544

2407

4764

7186

12474

2576

4875

7250

12577

2627

5092

7270

12748

2854

5350

7348

12876

2982

5370

7385

13632

3059

5420

7458

13650

3069

5555

7501

14577

3584

5923

7627

14865

3897

6069

7673

16136

Thank you,

Prosper Operations

CONFIDENTIALITY STATEMENT: This email message, together with all attachments, is intended only for the individual or entity to which it is addressed and may contain legally privileged or confidential information. Any dissemination, distribution or copying of this communication by persons or entities other than the intended recipient, is strictly prohibited, and may be unlawful. If you have received this communication in error please contact the sender immediately and delete the transmitted material and all copies from your system, or if received in hard copy format, return the material to us via the United States Postal Service. Thank you.

 
 
ABOUT PROSPER ABOUT LENDING ABOUT BORROWING PRIVACY
Copyright © 2005-2008 Prosper Marketplace, Inc. All rights reserved.
This message was sent from Prosper based on your communication preferences. Change your preferences.


If you no longer wish to receive these emails, please reply to this message with "Unsubscribe" in the subject line or simply click on the following link: Unsubscribe

Prosper Marketplace Inc.111 Sutter St., 22nd FloorSan Francisco, California 94104