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[xraider]

Lazyman, your blog said you were putting on your gray hat, suggesting - to me at least - that you think that somehow there's a gray area here. 

I think that collectively, we lenders have been fleeced by so many different borrower schemes, compounded by Prosper's concerted refusal to do any fraud prevention, that we just don't see any sarcasm or humor in your post (assuming, of course, that's what you intended).

[bamalucky]

Lazy,do you feel that Prosper is an ethical company?

[lazymanandmoney]

If you cared about consumers your site wouldn't have ads all over it.

What do ads have anything to do with not caring about consumers?  I have to make a living just like everyone else.  Money Magazine has ads on it.  Do you think they don't care about readers?  When I watched NBC last night, it had advertising on it as well.  Yet I think they cared about bringing value to the audience.

If you want to live in the world where the two are mutually exclusive then be my guest.  Just don't pretend he rest of the world is with you on that one.

[lazymanandmoney]

Lazyman, your blog said you were putting on your gray hat, suggesting - to me at least - that you think that somehow there's a gray area here. 

I think that collectively, we lenders have been fleeced by so many different borrower schemes, compounded by Prosper's concerted refusal to do any fraud prevention, that we just don't see any sarcasm or humor in your post (assuming, of course, that's what you intended).

By "we lenders", you mean to include me in that, right?  I think it was Bamalucky that was quick to point out my lending record.

[112233]

"we talk" lol

BTW, does anyone expect this guy to be around in 3 years to pay back the endorsement?

I've been around for the last 2+ years.  Do you think my grand plan is to write two years of posts on this (and my health website) so that I can run away with $25?  Seriously?!?!

No, seriously, you're really not defending your post, are you?

It obviously was a well-meaning mistake.  But even you have to admit, it was a mistake...

...right?

It wasn't a mistake.  I want to bring the issue to Prosper.  Even you guys can't deny that it's going to get their attention.  If it changes the system and makes it better, I accomplished exactly what I set out to do.

seems like a lot of work to bring this to the attention of prosper. were you just testing the waters here with a backup plan in case things didnt go so well?

[xraider]

lazyman, I'm being a lazywoman.  What's your lending name?

[Shenandoah]

As such, I think it might be worth thinking about whether you believe endorsements work as they should.  If you think they do their job, then I can see why you think my post was out of line.

Initially Prosper had groups.
Groups were supposed to lower defaults because of the social aspect.
Groups initially appeared to work - default rates seemed to be lower for borrowers in groups - or at least "good" groups.
Some lenders would only bid on borrowers in groups.
Then people learned to game the systems.
The problems were brought to Prosper's attention, but Prosper didn't care.
Soon groups became meaningless (with very few exceptions).

Now we have endorsements.
At first glance they seem like a good concept at a high level.
Initially they are appearing to work, based on the early statistics.
Lenders started bidding only on borrowers with endorsements.
Now people are learning to game the system.
The problems can be brought to Prosper's attention, but Prosper won't care.
Soon everyone will realize they aren't working.

Then Prosper will come up with some new social idea and the process will repeat yet again.  And again.  And again.

You can try whatever you want to bring problems to light, but in the long run it's going to be the statistics that determine what concepts stick and what concepts are meaningless.

[112233]

call me stupid, but if I was a borrower why should I give you $75 when I can do the same thing myself with someone I know?

Tempting, but I won't call you stupid.  I answered this in the post itself.  If endorsements get better rates then you'd want to get one.  If you can't convince to sign up, put money on the platform, and endorse you, buying an endorsement (from anyone) is easier.

the borrower gets the money from a payday loan store (credit card, or other source) and gives it to a relative/friend/spouse to endorse them with. if borrower knows PII of relative/friend/spouse, then they can just sign them up without the person knowing.

that probably happens already more than you think.

That's the saddest piece of news, I've heard all week.  There's no real way to know if that's how it's happening though.  Similarly there's really no way of knowing if people are Paypalling each other money to buy endorsements either.  As such, I think it might be worth thinking about whether you believe endorsements work as they should.  If you think they do their job, then I can see why you think my post was out of line.

If you think that endorsements can and should be improved, I'm surprised you would be very, very happy with my post today.  I thought we shared a common goal with this post... expose a weakness of Prosper.  I thought the community here would be loving it.

I dont think Prosper cares about the quality or source of endorsements. IMO, they just want their user count to be pumped up and   get lenders to bid. The rest is meaningless. It was not an accident for example that you all you need to sign up and endorse someone is an email address .

Me? Well, I dont give a crap about any endorsement from someone I dont know regardless of how much was put down. The bar doesnt have to be that high "to know someone" though. For example, I would consider Islandmele someone I know for purposes of bidding, even though I never met her.

[onthefence]

lazyman, I'm being a lazywoman.  What's your lending name?

http://www.lendingstats.com/lenders/technologyguy

[cowdog]

The bar doesnt have to be that high "to know someone" though. For example, I would consider Islandmele someone I know for purposes of bidding, even though I never met her.

I've never met Lazy Man, but now I and everyone else reading these boards know his endorsements (and probably his other recommendations) are worthless.

 

[lazymanandmoney]

Lazy,do you feel that Prosper is an ethical company?

I think that's a loaded question.  Everyone's ethics are different.  I don't spend much time analyzing Prosper's actions beyond the surface layer.  I simply don't have the time to devote to the cause.  I know you guys dig deeper.  I commend you on that.

I read something about a lawsuit or something that might have originated here.  I could be remembering incorrectly.  If it's what I started to read (it was really, really long and the legalize put me to sleep after the first point), then I commend the whole community for trying to make Prosper better.

That said, I think there's a tendency to witch hunt here or at least look at things from a negative perspective.  Maybe you are just being devil advocates (a role I love to play).  Even when I try to help people save money on cars (hardly considered a negative thing), it becomes a negative thing, because I'm looking for some return on my time spent to pay for food, housing, and things of that nature.

[Urbi_et_Orbi]

One could easily infer that your active blogging for Prosper could be construed to add credibility to any Prosper-related claims you make elsewhere.

It looks to me as though you were serious, but you included some language to give you an "I'm just joking" out if confronted by anyone.

If this was an attempt at satire, it was misguided and poorly executed.

[Urbi_et_Orbi]

Lazy,do you feel that Prosper is an ethical company?

I think that's a loaded question.  

I don't think it was intended as a "trick question." 

[lazymanandmoney]

I dont think Prosper cares about the quality or source of endorsements. IMO, they just want their user count to be pumped up and   get lenders to bid. The rest is meaningless. It was not an accident for example that you all you need to sign up and endorse someone is an email address .

Me? Well, I dont give a crap about any endorsement from someone I dont know regardless of how much was put down. The bar doesnt have to be that high "to know someone" though. For example, I would consider Islandmele someone I know for purposes of bidding, even though I never met her.

In fairness, I think Prosper says that endorsements without bids are essentially worthless.  I think someday they'll get rid of the ones without bids.

[onthefence]

Hmmm... good satire or scam...  reading the whole blog article, right have his bit about boiling & eating children (jk) he has this:

Why Am I Doing this?
If you think it sounds dirty, you are right. I’m putting on a grey hat in this case. I want to see how Prosper reacts to such a proposal. They’ve blurred the line by adding the social element to the loan marketplace. I want to blur it more. I want Prosper to look at endorsements and say, “Is this really the right model? Can we make it better?” Innovation occurs when  a potential problem is exposed. Perhaps “buying an endorsement” doesn’t qualify as a problem in Prosper’s eyes. If that’s the case, that’s worth knowing as well.

^-That above to me says this is clearly satire for a point.

This next part is a head scratcher.

Lastly, I think it’s a great way to demonstrate the power of social capital. A smart borrower gains with a lower interest rate. A lender (I won’t call myself smart) gains with a unique idea. If there’s a bonus of a financial reward for both parties, why not take advantage of that?

^-Is lazyman saying, 'hey, if prosper won't do anything about this I have a new business.'

So either he is being honest, or he is extending the satire.

I think people are blowing this up too much right now.  If it's satire/performance art, let's sit back & watch the magic.  If it's really a full blow scam, it should be readily apparent but he is being WAY to open & blunt about this.

So crowd, let's lighten up & watch the fun.