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[Risk_Reward]

Recent discussions of Prospers poor business practices got me thinking about the final straw that made me quit bidding on Prosper.  The loan in question http://www.prosper.com/lend/listing.aspx?listingID=142814 is now 3 months late. 

You can read about my issues with the loan and one of the hottest threads on the original Prosper forums here http://www.prosperreport.com/prosper/forums/archive/threads/2/6/5/26572.0.HTM

Funny I haven't thought about that issue in months.  Guess, I have moved past caring about Prosper.  I only invested $700, so I sometimes go months without looking at my account.  I was a lender for only about a month when I became fed up and wrote this post. 

It is sad to see such an interesting idea dying because of mismanagement.  It would have been interesting to see if a competent management team could have made it viable.

[Mtnchick]

There are several of the Nigerian wife scams that have funded and become a loan too. P-----r just doesn't care. The employees recent bidding on a questionable loan shows me that for people who handle money for a living, I REALLY don't want them handling mine.

[Risk_Reward]

There are several of the Nigerian wife scams that have funded and become a loan too. P-----r just doesn't care. The employees recent bidding on a questionable loan shows me that for people who handle money for a living, I REALLY don't want them handling mine.

Amen.  Every time an interesting loan comes up, I think about who is responsible for managing the transaction and I step away from the keyboard.

[cubbiesnextyr]

Recent discussions of Prospers poor business practices got me thinking about the final straw that made me quit bidding on Prosper.  The loan in question http://www.prosper.com/lend/listing.aspx?listingID=142814 is now 3 months late. 

You can read about my issues with the loan and one of the hottest threads on the original Prosper forums here http://www.prosperreport.com/prosper/forums/archive/threads/2/6/5/26572.0.HTM

Funny I haven't thought about that issue in months.  Guess, I have moved past caring about Prosper.  I only invested $700, so I sometimes go months without looking at my account.  I was a lender for only about a month when I became fed up and wrote this post. 

It is sad to see such an interesting idea dying because of mismanagement.  It would have been interesting to see if a competent management team could have made it viable.

I can't believe it's ONLY 3 months late.  I'd have thought it defaulted a long time ago...

[Risk_Reward]

I think they kept it current because of all the attention.  Now that you say that, I remember that the group leader promised someone that he would make the payments if the borrower didn't.  Anyone want to follow up on that?

[NewHorizon]

...I remember that the group leader promised someone that he would make the payments if the borrower didn't.  Anyone want to follow up on that?

FWIW, that promise is here:
http://www.prosperreport.com/prosper/forums/archive/threads/2/6/6/26638.0.htm#post324193

[mjerryfirst]

Even DakotahFury would concur that you are a bozo for bidding on that loan

[DakotahFury]

Even DakotahFury would concur that you are a bozo for bidding on that loan

It's Friday evening, Jerry...no date?

[Mtnchick]

Even DakotahFury would concur that you are a bozo for bidding on that loan

Boy, I actually heard the whooshing sound as the whole point of this went over your head.

[Urbi_et_Orbi]

On one hand, Prosper asserts that the narrative is not part of the loan application.  On the other hand, Prosper used to suspend borrowers who made offers of additional compensation as part of their narrative.

Seems to me that they can't have it both ways.

[Mtnchick]

On one hand, Prosper asserts that the narrative is not part of the loan application.  On the other hand, Prosper used to suspend borrowers who made offers of additional compensation as part of their narrative.

Seems to me that they can't have it both ways.

Hell, they suspended someone for having .org in the Q&A section of their loan but are bidding on a loan that did the same. 

[Urbi_et_Orbi]

By taking action based on selected narratives - and not always when reported - haven't they implicitly suggested that the narrative is part of the loan application?  In that event, how can they think that they're not responsible for veryifying items as part of the PFV - especially when they have received multiple reports outlining the fraudulent and/or inaccurate information presented to lenders?

In any event, could any suits Prosper bring (ha-ha!) also address fraudulent loan app?

[ira01]

On one hand, Prosper asserts that the narrative is not part of the loan application.  On the other hand, Prosper used to suspend borrowers who made offers of additional compensation as part of their narrative.

Seems to me that they can't have it both ways.

I'm not aware of Prosper ever having stated that the narrative is not part of the loan application.  Rather, Prosper simply states that they do not verify the information contained therein.  Those are two very different (and not contradictory, IMHO) things.  I have stated before that I think there is nothing wrong with Prosper clearly telling lenders that in PFV it only verifies identity, employment, income, and bank account (did I miss anything?).  That does NOT mean that a borrowers statements in the narrative are not part of the loan application, and does not mean that it wouldn't be fraud for a borrower to make material misrepresentations with the intent to deceive in the narrative.  It just means it is less likely they would be caught.  However, I do think that Prosper has a duty to respond in an appropriate manner when lenders notify them of fraudulent statements in the narrative. 

[mothandrust]

Recent discussions of Prospers poor business practices got me thinking about the final straw that made me quit bidding on Prosper.  The loan in question http://www.prosper.com/lend/listing.aspx?listingID=142814 is now 3 months late. 

Why so glum?  3 months late is a good thing--when the lottery payments come in, lenders will get late fees on top of the extra 30% they were promised.

[Risk_Reward]

I have stated before that I think there is nothing wrong with Prosper clearly telling lenders that in PFV it only verifies identity, employment, income, and bank account (did I miss anything?). 

Prosper also has said that they don't verify any of that information either.  Basically, you are lending to an anonymous person who created a listing and gained access to a bank account.  Beyond that, you don't know if any of the rest is true.