RL, that's a very interesting email. I'm not sure Prosper can legally set a price without waivers from lenders, even if there is mathematical exactitude on what JDBs have paid in the past. However, I think it's an interesting idea, 24% is a generous (to Prosper and to lenders) contingency, and I hope it works!
There is no discussion of settlement authority. I assume that Prosper will have the right to determine whether to accept a settlement?
In California, should any of these cases go to judgment, court costs and service of process fees (as well as garnishment costs) will be awarded to the prevailing party.
Since none of my loans are in the New Agency Test, I appreciate the update, and would appreciate your continuing to update on the progress of the suits and of payments. I hope that Prosper does significantly better on these matters for the lenders than did the JDBs.