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[iLIE]

http://blog.prosper.com/

In the meantime, I want to give you an update on the accounts in the legal test. We have obtained service on 12 of the suits – and have sent “proof of service” back to the courts. Another 41 have been formally entered on the dockets of the court in and are currently out for service. I would believe that some number of these have been served, but we only have a “batch” interface with the process servers, so I don’t have real time date on this. Finally there are 7 suits on which we are waiting for the “file stamped” copy back from the court to send out to service.

[RateLadder_com]

Permanent Link: http://blog.prosper.com/2008/05/09/legal-test-update/

[iLIE]

I'll add my commentary here.

I don't think these lawsuits will matter one whit in the big scheme of things.It isn't gonna make any of the other borrowers repay.It won't do anything but force most of these borrowers into a faster bankruptcy.

If prosper cared about lenders,they would remove Texas from the borrower list,show 30,60 day lates,include a more detailed credit report,stop pimping false advertising,verify the lies in the description & stop letting people list who have no verifiable income.

[Mtnchick]

Seems he only blogs when things are coming to a boil over here.

[NewHorizon]

Only?  I don't think so.

If he DOES react to the concerns expressed here from time to time, I don't see that as a bad thing. 

But he may be unwittingly setting a precedent that's going to prompt a few screeds - or just a poke from bama for "ignoring" something or other - here at .ORG if he seemingly stops doing this. 

[iLIE]

Hats off to Doug. Too bad his honestly will cost him his job one of these days.

I'd love to hear his "off the record" thoughts on prosper lenders.

[112233]

Thanks Doug. I hope your style rubs off on the people around you.

[Mtnchick]

*poofy poofy*

[onthefence]

I don't think these lawsuits will matter one whit in the big scheme of things.  It isn't gonna make any of the other borrowers repay.It won't do anything but force most of these borrowers into a faster bankruptcy.

Well Doug did say he was only going after the ones he thought would be worth the effort to get the recovery.  I doubt he will get a 100% hit.  But he purports to be walking in this with some experience & what appears to be a bit of wisdom.  I look forward to see his results.

In terms of reducing defaults, it won't do much unless they go nation-wide & advertise to the borrowers up front that a lawsuit being filed against them is a real possibility if they default.

[ira01]

I don't think these lawsuits will matter one whit in the big scheme of things.  It isn't gonna make any of the other borrowers repay.It won't do anything but force most of these borrowers into a faster bankruptcy.

Well Doug did say he was only going after the ones he thought would be worth the effort to get the recovery.  I doubt he will get a 100% hit.  But he purports to be walking in this with some experience & what appears to be a bit of wisdom. 

Not sure how he expects to get much money from the guy who got foreclosed on his $650K mortgage -- I doubt he has much cash lying about (especially since, IIRC, he is the one who worked for the real estate company that got raided by the FBI).

In terms of reducing defaults, it won't do much unless they go nation-wide & advertise to the borrowers up front that a lawsuit being filed against them is a real possibility if they default.

Exactly what Prosper needs to do, as I've been arguing for probably about a year now.

[mhs505]

I don't think these lawsuits will matter one whit in the big scheme of things.  It isn't gonna make any of the other borrowers repay.It won't do anything but force most of these borrowers into a faster bankruptcy.

Well Doug did say he was only going after the ones he thought would be worth the effort to get the recovery.  I doubt he will get a 100% hit.  But he purports to be walking in this with some experience & what appears to be a bit of wisdom. 

Not sure how he expects to get much money from the guy who got foreclosed on his $650K mortgage -- I doubt he has much cash lying about (especially since, IIRC, he is the one who worked for the real estate company that got raided by the FBI).

It might be about setting precedent.  The facts in this one might be easy to get a judgement, even if it isn't paid.   Doug said he wanted to establish that PMI will sue and win so that can be spread about CB. 

[ira01]

I don't think these lawsuits will matter one whit in the big scheme of things.  It isn't gonna make any of the other borrowers repay.It won't do anything but force most of these borrowers into a faster bankruptcy.

Well Doug did say he was only going after the ones he thought would be worth the effort to get the recovery.  I doubt he will get a 100% hit.  But he purports to be walking in this with some experience & what appears to be a bit of wisdom. 

Not sure how he expects to get much money from the guy who got foreclosed on his $650K mortgage -- I doubt he has much cash lying about (especially since, IIRC, he is the one who worked for the real estate company that got raided by the FBI).

It might be about setting precedent.  The facts in this one might be easy to get a judgement, even if it isn't paid.   Doug said he wanted to establish that PMI will sue and win so that can be spread about CB. 

I'm all in favor of that, although unless there were unique facts about this borrower that we don't know (like he's a well-known CB personality), I'm not sure why Prosper shouldn't kill two birds with one stone by setting "precedent" with borrowers that have assets or income that can be tapped to pay the judgment.  After all, it should be pretty easy for Prosper to win all of these cases -- borrwer got a loan, borrower didn't pay loan according to terms.  Although the P2P stuff adds complications, those are the same from borrower to borrower. 

[mhs505]

I just threw it out as a possibility.   DF seems like a straight up guy trying to do the best with the hand he has been dealt.  <shrug>

[BrassKnuckles]

How many times have we said "let's sue the bastards!" -- well, here's the first attempt, so I say let's be grateful someone over there actually follows through on what the say-- it's better than doing nothing (which is the usual business model they follow).

[ira01]

How many times have we said "let's sue the bastards!" -- well, here's the first attempt, so I say let's be grateful someone over there actually follows through on what the say-- it's better than doing nothing (which is the usual business model they follow).

Although I believe it is safe to say that most of us are happy Prosper is trying some lawsuits, that doesn't mean that we are happy that Prosper seems to be doing so in a very non-dilligent manner.  As my mamma used to say, "if something is worth doing, it is worth doing right."