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[Senator]

FWIW eeemaan's loan (from page 1) has been charged-off, but also shows in-collections (PCOCT).  His last payment was December 2007.  He must have received some payments in 2008.  Not $0.01 was passed onto his lenders.

[mothandrust]

Another blender gone bad...

http://www.prosper.com/invest/listing.aspx?listingID=123773

...who has 10 current loans...

http://www.ericscc.com/lenders/leebyy/loans?sort=12&p=1

....and a $260 poker bankroll. 

http://www.pokerpages.com/members-only/user/1175730

[dotk]

Another blender gone bad...

http://www.prosper.com/invest/listing.aspx?listingID=123773

...who has 10 current loans...

http://www.ericscc.com/lenders/leebyy/loans?sort=12&p=1

....and a $260 poker bankroll. 

http://www.pokerpages.com/members-only/user/1175730

Here is the link to the listing on Eric's
http://www.ericscc.com/listings/123773

The Wine shop has closed.
http://www.aswineshop.com/
http://www.yelp.com/biz/angels-share-wine-shop-modesto-2

[mothandrust]

Here is the link to the listing on Eric's
http://www.ericscc.com/listings/123773

The Wine shop has closed.
http://www.aswineshop.com/
http://www.yelp.com/biz/angels-share-wine-shop-modesto-2

What's the connection between the wine shop in Modesto, CA and this blender in Boise, Idaho?

[dotk]

Here is the link to the listing on Eric's
http://www.ericscc.com/listings/123773

The Wine shop has closed.
http://www.aswineshop.com/
http://www.yelp.com/biz/angels-share-wine-shop-modesto-2

What's the connection between the wine shop in Modesto, CA and this blender in Boise, Idaho?

The wine shop is for one of the AA loans http://www.ericscc.com/listings/82142  that the Idaho blender loaned to.  http://www.ericscc.com/lenders/leebyy/loans?sort=7&p=1

[mothandrust]

But the blender leebyy is only in the wine shop loan for $75.

My blended whine is that he's got 10 more than are current that Prosper should be offsetting against the payments he owes on his own loan.

[ira01]

Andrew promised on the now deleted forums that right of offset would be put in place.

Shira promised in the late summer or early fall of 2007 that Prosper's lawyers were busy working on the problem, and that they expected to be done "by the end of the year."  Since nothing happened at the end of 2007, now that it is nearly the end of 2008 maybe we'll see the promised action.   

And now the end of 2009 has come and gone, and of course, still no Prosper action on this common sense idea.    Prosper would rather suspend xraider for contacting a few deadbeats (who she wasn't even a lender too), rather than actually trying to collect some money for lenders.

[blue]

I requested some clarification on a blender note and received the following from Prosper that may have answered the problem - at least on future notes:


Dear blue,

Prosper's new lender service agreements state that should the lender take out a Prosper loan and default, Prosper may use the lender funds to offset the defaulted note. This however, is only available when lenders agree to the new lender service agreements. The borrower/lender in question has not agreed to the new lender service agreement. Prosper is therefore not able to reserve his lender funds. This applies to charged-off notes but not discharged notes due to bankruptcy. These notes have had their balance reduced to zero as a result of the discharge. Thank you for using Prosper, please let us know if you have any further questions.

For future reference, your Prosper support case number is xxx.

Sincerely,
Prosper Customer Support

[cowdog]

I requested some clarification on a blender note and received the following from Prosper that may have answered the problem - at least on future notes:


Dear blue,

Prosper's new lender service agreements state that should the lender take out a Prosper loan and default, Prosper may use the lender funds to offset the defaulted note. This however, is only available when lenders agree to the new lender service agreements. The borrower/lender in question has not agreed to the new lender service agreement. Prosper is therefore not able to reserve his lender funds. This applies to charged-off notes but not discharged notes due to bankruptcy. These notes have had their balance reduced to zero as a result of the discharge. Thank you for using Prosper, please let us know if you have any further questions.

For future reference, your Prosper support case number is xxx.

Sincerely,
Prosper Customer Support

Ah, this seems to be admission that the old lender agreements remain intact until (or unless) the new one is signed.

While many lenders have been stating this, I don't know that Prosper was ever definitive on the subject, but maybe I missed something.

[JammingJAY]

I requested some clarification on a blender note and received the following from Prosper that may have answered the problem - at least on future notes:


Dear blue,

Prosper's new lender service agreements state that should the lender take out a Prosper loan and default, Prosper may use the lender funds to offset the defaulted note. This however, is only available when lenders agree to the new lender service agreements. The borrower/lender in question has not agreed to the new lender service agreement. Prosper is therefore not able to reserve his lender funds. This applies to charged-off notes but not discharged notes due to bankruptcy. These notes have had their balance reduced to zero as a result of the discharge. Thank you for using Prosper, please let us know if you have any further questions.

For future reference, your Prosper support case number is xxx.

Sincerely,
Prosper Customer Support

Ah, this seems to be admission that the old lender agreements remain intact until (or unless) the new one is signed.

+1

[ira01]

I requested some clarification on a blender note and received the following from Prosper that may have answered the problem - at least on future notes:

Dear blue,

Prosper's new lender service agreements state that should the lender take out a Prosper loan and default, Prosper may use the lender funds to offset the defaulted note. This however, is only available when lenders agree to the new lender service agreements. The borrower/lender in question has not agreed to the new lender service agreement. Prosper is therefore not able to reserve his lender funds. This applies to charged-off notes but not discharged notes due to bankruptcy. These notes have had their balance reduced to zero as a result of the discharge. Thank you for using Prosper, please let us know if you have any further questions.

For future reference, your Prosper support case number is xxx.

Sincerely,
Prosper Customer Support

Wow, only three YEARS after Prosper first promised in writing to do this.  If they had kept their word, there would not be any active loans left now with a blender who hadn't agreed to that.

ETA:  Moreover, even for blenders who hadn't agreed to offset, Prosper should have filed a lawsuit against any blender with a substantial lending account, since that would eliminate the "blood/turnip" problem of obtaining a worthless judgment.  Prosper could have done so for a few hundred bucks a pop, which would have been largely recoverable as costs anyway.  In the vast majority of cases the borrower wouldn't bother to appear, Prosper should win a default judgment (assuming, of course, that Prosper wasn't as incompetent as it was in the NAT cases), and with a judgment Prosper could seize the lending account without the blender having agreed to it, just like a judgment creditor can seize even unrelated bank accounts. 

[blue]

So for those of us that are still lending I am wondering:

1) What is the date the 'new' lender agreement went into effect? (or other way to identify listings where the blender has signed the new agreement)?
2) Is there a way to sign the new lender agreement?
3) Can someone with an active listing sign the new agreement?

[big-al]

I don't see a 'lender service agreement' on the site.  Is it different from the 'lender registration agreement'?

Can anyone find the actual language which allows the offset?

[mothandrust]

This applies to charged-off notes but not discharged notes due to bankruptcy.

Why only to charged-off notes?  If a blender gets a $100 payment from a loan and is late with his Prosper loan payment, that $100 should go directly to pay lenders on his late loan.

[ducks]

This applies to charged-off notes but not discharged notes due to bankruptcy.

Why only to charged-off notes?

Because of bankruptcy laws. You can't collect on a debt that has been discharged through bankruptcy, even if there are deposits available to offset the discharged debt.