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[ira01]

The borrower isn't online often, so it took a while to get ahold of additional info from her...

Thanks for your efforts on this.

(This loan is in the 4+ month late category, and there's no "In collections" indication on it.)

She said she talked to DF about a year ago trying to work out a new payment plan - like stretch out the loan or lower the interest rate.  She said she did this because that was the advice of debt counselors.  But she said DF wasn't nice and wouldn't agree to any new plan.

As to the "not nice" part, that is so subjective it is hard to say whether that should carry any weight.  Although I would hope (and I assume) that he didn't cuss her out and hang up on her, she might interpret anything other than "sure no problem" as being "not nice."  As to the "wouldn't agree" part, there is no legal way for Prosper to stretch out the loan or (especially) lower the interest rate (not that Prosper usually feels itself bound by its legal agreements).  

She said her account was turned over to a collection agency who called every day which was "quite harassing", and then they messed up her credit. 

GOOD!  I'm glad to hear it.  After the reports we've heard from other borrowers of few if any contacts, it is nice to hear that in at least some cases, the CA is on the job.

She then got ahold of Tim Bright who said he'd check with DF.  He came back and said that DF said if she paid "$361 before 120 days, that would keep me away from the Collection Agency".  (Her usual monthly payment is $387.) She got confirmation of this agreement in a short PM from Tim Bright (which she forwarded to me without me asking for it).  She said she paid on the 120th day. 

Would that have made her less than 30 days late?  If not, I don't see how Prosper has any legal right to keep the loan from collections, as specified in the LRA.

So a while back, but after some time had passed, the borrower tried to contact Tim Bright again to see if there's any update on the loan-stretching thing - because she's still interested in doing this.  But he's been unresponsive for a good month or more.  She made it a point to explain to me that she's been most earnest in trying to work out something with Prosper.

That's more like the Prosper we all know -- nothing like ignoring emails and VM's from late borrowers who want to pay.  

IMHO: as a lender, I don't like the idea of reworking the loans.  But I think this is more and more a reality in the lending marketplace in this time of sub-prime meltdowns.  So begrudgingly, I'd like to see Prosper find a way to do rework loans too - altho' I wouldn't dare pretend to comprehend the magnitude of the changes that would need to be made.

The main problem with this idea, it seems to me, is that it requires that someone have the authority to make decisions about particular modifications, and Prosper has proven again and again that it has neither the competence nor the ethics to be that decisionmaker.  Does anyone here (other than NA and MHS) really trust Prosper to competently make those decisions in lenders' best interest (as opposed to Prosper's best interest)?

[onthefence]

Finally an incident at Prosper where they did not unilaterally make retroactive changes to the LRA.  Ironically, it was for a borrower trying to keep a loan going (if we are to believe any of this).

Well the borrower can still keep the loan going by making payments.  Her hurt credit rating is a direct result of her not making payments as agreed.  I'm not trying to be harsh on her, but those are the facts.  It's not like her credit report is inaccurately reflecting her credit activity.  The best way out of this trap for her is to catch up on payments.  Otherwise she is stuck doing what she can & her credit report reflecting that.

[NewHorizon]

Link to loan in question?

I know you're anxious to see it.  I would be too if the situation was reversed.
But she said she's already gotten nasty-grams from lenders.  I find myself not wanting to exacerbate that by directing everybody to her Prosper profile.

She turned down my invite to engage in a discussion here, saying she's not emotionally up to it - especially if snide remarks are directed toward here (either online or privately).  And she politely declined my request for her permission to cut/paste her messages to here - saying she wasn't 100% sure she could be so careful as to leave out identifying info.  Point being that I think she prefers to keep a buffer zone, of sorts, and I'm not inclined to do anything to counter these wishes.

Would that have made her less than 30 days late?  If not, I don't see how Prosper has any legal right to keep the loan from collections, as specified in the LRA.

I don't think I'll revisit her payments just now, but I'm pretty sure the answer to your question is "no".  After all, it was a reduced payment after 120 days.  But in any case, the loan is now 4+ months late and not indicated as being in collections.  I have no idea how this loan could stay out of collections and yet at the same time not run afoul of the LRA.  Buy hey, IANAL.

[onthefence]

I know you're anxious to see it.  I would be too if the situation was reversed.
But she said she's already gotten nasty-grams from lenders.  I find myself not wanting to exacerbate that by directing everybody to her Prosper profile.

Eh.  I understand.  Sugar does better than vinegar.  Some lenders don't quite get that.

[ira01]

I know you're anxious to see it.  I would be too if the situation was reversed.
But she said she's already gotten nasty-grams from lenders.  I find myself not wanting to exacerbate that by directing everybody to her Prosper profile.

Eh.  I understand.  Sugar does better than vinegar.  Some lenders don't quite get that.

Sometimes vinegar is necessary.     But in any event, I don't see anything in this thread that is likely to cause lenders to harass the borrower (more than just the fact of her lateness, which lenders on her loan already know).  Moreover, if she gets nasty-grams from lenders, she can and should report them to Prosper (we all know Prosper protects borrowers, including delinquent ones, over lenders).  Or she could do what most of us learn in elementary school and ignore unkind comments (especially where, as here, the unkind comments are motivated by a sense of being burned by someone lenders lent their hard earned money to).   

Here, the borrower already went BK in August 2005, supposedly due to a medical problem.  Less than two years later she was seeking a $10K Prosper loan to pay a tax bill (supposedly due to "incorrect information on deductions) and consolidate debts (although most of her credit card debt was at the same rate as her Prosper loan  , saying that she's "doing great medically."  Yet within months she's already delinquent on the Prosper loan? 

I think the lenders on the loan have a right to all available information.  Here is the listing:

http://www.prosper.com/lend/listing.aspx?listingID=122603.

[onthefence]

Hmmm... so she can't file for bankruptcy again until 2012.  Boy is she in a tough place.  But not as bad as it could be.  She essentially swapped a debt she can't get away with for one that she can dump.

Hmmm... pimping out someone else's dog:
http://www.prosper.com/account/common/image_view.aspx?subject_type=1&object_id=122603&image_id=423948

[NewHorizon]

I think the lenders on the loan have a right to all available information.

I've got her full name and work number.
R U saying I should post that?

[onthefence]

I've got her full name and work number.
R U saying I should post that?

Well if you are offering... Sure!  Why not?

[lenderguy]

Moreover, if she gets nasty-grams from lenders, she can and should report them to Prosper (we all know Prosper protects borrowers, including delinquent ones, over lenders).

Or she could just avoid it in the first place.

  Or she could do what most of us learn in elementary school and ignore unkind comments (especially where, as here, the unkind comments are motivated by a sense of being burned by someone lenders lent their hard earned money to).   

She kinda is already...

The borrower has absolutely nothing to gain by posting here, so I don't blame her for not doing so.

[ira01]

Or she could do what most of us learn in elementary school and ignore unkind comments (especially where, as here, the unkind comments are motivated by a sense of being burned by someone lenders lent their hard earned money to).   

She kinda is already...

The borrower has absolutely nothing to gain by posting here, so I don't blame her for not doing so.[/quote]

How about a little respect for facing the people who trusted her and who she screwed over, and at least answering questions?  I don't know her situation; maybe she has a good (well, justifiable) reason for not paying on her loan.  But not being "emotionally up to" facing those lenders seems pretty wimpy to me.

[lenderguy]

How about a little respect for facing the people who trusted her and who she screwed over, and at least answering questions?  I don't know her situation; maybe she has a good (well, justifiable) reason for not paying on her loan.  But not being "emotionally up to" facing those lenders seems pretty wimpy to me.

When I screw up, the absolute last thing I want is someone to keep reminding me of it.  Given the way this board leans, a DQ/defaulted borrower is just asking for trouble by posting here.

I'm not an economist, but it wouldn't surprise me if somebody will actually prove that it was in an HR borrower's self economic interest to walk away from a loan without making more than a token payment or two.

[bamalucky]

justincase/mr deluxe posts here all the time & i've never seen anyone give him any grief

[Texaswatchdog]

When I screw up, the absolute last thing I want is someone to keep reminding me of it.  Given the way this board leans, a DQ/defaulted borrower is just asking for trouble by posting here.

+ 1  A delinquent borrower coming on to prosper.org would be like a KKK member showing up at a NAACP meeting.  There are few members here that would trick her on to coming on here [expunged] and then say mean things to her. 

I think it is great she wants to pay back her loan and is at least sending in some money. Proper should work with her in some way. If they don't then she is just going to give up and walk away from the loan. They should at least waive the late fees. As far as that being a violation of the lender agreement, when has the lender agreement stopped Prosper from doing something?

[Mark12547]

Texaswatchdog, on the old (now replaced) official forums I have seen other borrowers post their apologies and try to state where they are and why their payments are late, and receive a chewing out as well as receive a few supporting messages. I think this is one of those "damed if you do, damed if you don't" situations. I can certainly understand a borrower not wanting to face us with an explanation.

[Texaswatchdog]

Texaswatchdog, on the old (now replaced) official forums I have seen other borrowers post their apologies and try to state where they are and why their payments are late, and receive a chewing out as well as receive a few supporting messages. I think this is one of those "damed if you do, damed if you don't" situations. I can certainly understand a borrower not wanting to face us with an explanation.

It would be great if delinquent borrowers could come on here and explain their situation, maybe even ask for another loan.   Just kidding on that last part. Unfortunately, there are a few jaded members who ruin things for everyone else. And as I have already learned, there is not any real moderation or rules against people being mean or using profanity at one another on here. It would be a total set up for a delinquent borrower to come on here.