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[cowdog]

If Prosper learns that a "borrower" claims identity theft, what do you think Prosper should do about it?  Should Prosper require the "borrower" to obtain a court order that it's not his debt?  If that hasn't happened on the other (small) number of repurchased loans, why here?

I suspect PMI changed the game to hardball once served with a letter threatening legal action.

[xraider]

If Prosper wants to play hardball, there will be more angry lenders.  Bad PR move on its part.

[Teddie33]

From what little you have allowed us to see points to a man trying to get his name removed from credit card accounts that will be sticking his wife with them.

I would think each prosper fraud issue would be a case by case issue and not 1 set rule.

Teddie, from what little I've allowed you to see??  Wow.  This is all public record.  Go read it for yourself.  And stop with the insinuations.  It's beneath all of us here.

Hell, you could even email some of the stuff you can't upload  

[Xenon481]

Bad PR move on its part.

Does this surprise anybody anymore?

[xraider]

Send me your email address and I'll email you the wife's response.

I just copied it about 5 times at work today and I couldn't get it below 128kb.  I don't understand why not, because the husband's response is longer, and I was able to upload that!

[Cushie]

Aside from all the ID theft stuff, I feel incredibly bad for the husband if his wife was this underhanded. 

[Teddie33]

Aside from all the ID theft stuff, I feel incredibly bad for the husband if his wife was this underhanded. 

I would think she would be in jail if this is true.

[Cushie]

Aside from all the ID theft stuff, I feel incredibly bad for the husband if his wife was this underhanded. 

I would think she would be in jail if this is true.

I wondered about that.  Ira, X, any reason she wouldn't be brought up on charges for this?

[xraider]

Cushie, it's quite possible she'll face charges.  Realistically, white collar crime and identity theft are low priorities, but if it's nicely wrapped up for prosecutors, it may happen.  I didn't read the complaint to see how much was at issue with the other creditors, and the prosecutors may not be horribly enthusiastic about prosecuting a wife for stealing her husband's ID but I think they should......

[ira01]

From what little you have allowed us to see points to a man trying to get his name removed from credit card accounts that will be sticking his wife with them.

I would think each prosper fraud issue would be a case by case issue and not 1 set rule.

And what do you think about the fact that Prosper has only repurchased ONE loan originated after 8/1/07 (that's more than 11 months, during which time Prosper originated roughly HALF of its entire all-time loan volume)?  That's compared to 50-60 loans repurchased prior to that time (the other half of Prosper's total loan portfolio).  I conclude from that fact that Prosper has simply ceased honoring its "100% ID-theft guarantee," being helped along in that endeavor by the abolition of its former (useful) forums, and its careful scrubbing of all "PII" from listings (thereby preventing forum detectives from finding ID-theft loans and raising a shit-storm about them on the public forums, which historically was how lenders got Prosper to honor its guarantee).  For interesting reading, try reading about the infamous Leporello ID-theft loan case on prosperreport.com (another shocking example of Prosper's lack of dilligence).

[ira01]

Cushie, it's quite possible she'll face charges.  Realistically, white collar crime and identity theft are low priorities, but if it's nicely wrapped up for prosecutors, it may happen.  I didn't read the complaint to see how much was at issue with the other creditors, and the prosecutors may not be horribly enthusiastic about prosecuting a wife for stealing her husband's ID but I think they should......

I agree.  Look at the almost complete loack of criminal prosecutions (until very recently) in the sub-prime mortgage debacle, which is having a serious effect on the entire national economy. 

[112233]

what protocol does prosper follow when a borrower claims ID theft?

[ira01]

If Prosper learns that a "borrower" claims identity theft, what do you think Prosper should do about it?  Should Prosper require the "borrower" to obtain a court order that it's not his debt?  If that hasn't happened on the other (small) number of repurchased loans, why here?

I suspect PMI changed the game to hardball once served with a letter threatening legal action.

You're kidding, right?  Now Prosper's breach of contract and breach of fiduciary duty is the LENDERS' fault, for finally sticking up for our rights?  How do you explain Prosper's virtually complete lack of repurchases of any loans originated after 8/1/07 (long before the legal letter), then?

[mhs505]

This case seems to differ from many in that there is no contention that the loan proceeds were deposited in an account that was, indeed his (along with her).   He is claiming, and can presumably demonstrate, that he did not benefit from, and had no knowledge of, the money.  In most cases I would expect there would be an easy demonstration that the account did not belong to the ID theft victim in the first place.  The situation would seem to ask for more proof than your garden variety fraud.

If he signed any checks from and/or took any money out of that account AFTER the funds were deposited, it is going to be even harder to prove his claim.

[cowdog]

Did they ever make a repurchase that wasn't proven either by a court, or police?

I think they would demand proof from a higher authority that the loan is fraud before repurchasing, not simply take a borrower's word for it.