Oh! Oh! Oh! I've got one:
Meet Angel Rivera, a 4 star hotel worker looking to consolidate. Angel's credit shows to be good, he is a group member, has an endorsement from his leader, and just needs a helping hand:
http://www.prosper.com/lend/listing.aspx?listingID=42992Meet teh cowdog, someone who has a few bucks to help someone out.
OOPS... Angel defaults after making only a few payments, 92 lenders have lost their investment.
Angle has walked away with $21,000 of lenders money. Prosper doesn't do squat: collections makes one call from the Philippines and find no one home, so don't bother calling again.
The credit report is never pulled again, Prosper has nothing to gain if Angel pays or doesn't pay. lenders are the only ones who are out money.
The nonpaying loan sits for months and months before it is even sold. Finally, it is sold for pennies on the dollar, for lenders representing 92 cents lost for each dollar invested
Prosper, let's rip off lenders together.