Good to see that Prosper, a financial services company whse sole business is making and selling loans that carry percentage interest rates, cannot even calculate percentages correctly. Not that any example of Prosper incompetence surprises me any more, but this is really something else.
Where's Traveler when we need him -- he should send one of his certified letters to Prosper demanding that lenders be repaid the collections over-charges that we have all been charged by Prosper! For loans that pay after 30 days in collections, we have been and are being charged 70%
of the base collection fee percentage of 15% (i.e., 10.5%, rather than the base collection fee percentage
reduced by 70% (which would be 30% of the 15%, or 4.5%)). And for loans that pay after 60 days in collections we are being overcharged even worse -- 7.35% instead of 1.35%).
Of course, it is an interesting question which part of the fee agreement is binding -- the textual description of what the fees SHOULD be, or the erroneous chart showing what the fees are when mis-calculated. That probably depends on Prosper's and the Collection Agencies' intent at the time of contracting. What a bunch of morons.
ETA: Upon closer examination, I see that this Agreement is not the Prosper/Penncro agreement, which actually does contain the fee structure that Prosper has applied (i.e., 10.5% and 7.35% for 31 and 61 day collections payments).
http://www.secinfo.com/d11MXs.u2C7n.7.htm. The Agreement containing the different fee structure noted by 112233 is between Prosper and "Account Solutions Group LLC," and dated January 1, 2007. I wonder if that is the legal name of First Choice? In any event, unless Prosper never used "Account Solutions Group LLC," it seems that at least some lenders were overcharged on collections fees.
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Topic: prosper's contract with collection agencies (Read 2311 times)