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[HollowOak]

I'm meaning this in the nicest way possible. Please, no sarcastic comments, etc. Does anyone know exactly what the current Prosper policies or procedures are regarding late loans?

As I understand it, once a loan goes <15 late, Prosper follows up with the borrower. When the loan goes late (+30 days), Prosper transfers the loan to the collection agency that then tries to collect on the loan. I think this part I understand.

What I don't understand, is when a loan is transferred back from the collection agency to the in-house "post charge-off collection" bucket.

I have loans that are 6-7 months overdue and are still at Penncro. I have other loans of similar age that are in no state that the Prosper interface can tell me what they are in - thus I assume they are in the Post Charge-off Collections bucket.

Then I have this loan (click for larger view):


The borrower stopped paying regularly in December of 2007. However, (s)he has made additional payments in March, May June and July.

On the payments in March, May and June, I got late fees. On the payment in July, I didn't get late fees, but the collection agency still took their slice.

My best explanation is that since there were only a few days between the June and July payments, there were no additional late fees calculated and thus the borrower got to pay off some regular interest and principal. Without having run the numbers, I'd actually have to wonder if the borrower didn't have accumulated interest to pay off though.

Thanks for any clarification.

PS. I didn't ask Prosper CS since they still haven't responded to my previous question regarding my loans in BK status. I'm not in a mood to waste more time jumping though the hoops to send them email just to not get a response.

[ira01]

Should you really be posting a screen shot of the extended credit data in the Lobby?

[xraider]

HO, in all seriousness, I don't think Prosper has yet to figure out what it's doing with late payments.  Anything nonroutine seems to be a problem, and by nonroutine I guess I need to include late borrowers actually paying anything.  (No, I'm not being sarcastic.)

I'm also wondering why, of my 6 4+(+++++++) lates, 2 still show in collections, and one of those shows both collections and bankruptcy.  There's no reasonable explanation for that, since you would expect the loan in BK to be OUT of collections, and you would expect the other to show it was in the new bucket.

I really think Prosper doesn't have a handle on this (best case for Prosper).

[ira01]

HO, in all seriousness, I don't think Prosper has yet to figure out what it's doing with late payments.  Anything nonroutine seems to be a problem, and by nonroutine I guess I need to include late borrowers actually paying anything.  (No, I'm not being sarcastic.)

I think this is right.

I'm also wondering why, of my 6 4+(+++++++) lates, 2 still show in collections, and one of those shows both collections and bankruptcy.  There's no reasonable explanation for that, since you would expect the loan in BK to be OUT of collections, and you would expect the other to show it was in the new bucket.

Do those two have recent payments?  That seems to be the dividing line between my 2 4+++ lates in collections, and my 2 out of collections.  I'm just speculating here, but maybe Prosper is keeping loans with recent payments "in collections" either to continue paying AmSher its cut of future payments or just to keep these "[semi]-paying" loans from being accelerated and charged-off.

[Mtnchick]

Do those two have recent payments?  That seems to be the dividing line between my 2 4+++ lates in collections, and my 2 out of collections.  I'm just speculating here, but maybe Prosper is keeping loans with recent payments "in collections" either to continue paying AmSher its cut of future payments or just to keep these "[semi]-paying" loans from being accelerated and charged-off.

That would suggest that no only is there no "default/charged off" status (none of mine have this status) but they are moving them back into collections should they receive payment.

[ira01]

Do those two have recent payments?  That seems to be the dividing line between my 2 4+++ lates in collections, and my 2 out of collections.  I'm just speculating here, but maybe Prosper is keeping loans with recent payments "in collections" either to continue paying AmSher its cut of future payments or just to keep these "[semi]-paying" loans from being accelerated and charged-off.

That would suggest that no only is there no "default/charged off" status (none of mine have this status)

Andrew's blog post said that the lender account pages would show this status with the next software update.  Until then, I think the combination of being 4+months late and not showing "in collections" is the best indication of charged-off status, although I suppose that there are some other loans bearing this combination, such as ones where the borrower had sent a C&D (which may, or may not, be in charged off status).

but they are moving them back into collections should they receive payment.

That wasn't what I meant -- I should have been more clear.  I meant that perhaps loans that had had a recent payment before the charged-off business started were left with the collection agency and not charged off.  That would make some sense, as loans that were paying, even if not paying full monthly payments or paying less than monthly, would probably benefit from not being charged off, a status that Andrew indicated cannot be left once entered.  Of course, such loans that then stopped paying would have to be re-evaluated for charged off status at some point in the future, and those types of situations are the ones that Prosper is especially bad it, so they may wind up lingering in the twilight zone forever.

[xraider]

My newer 4+ lates still show in collections.  Only one of my 4+ lates ever made a payment after going 1+ late, and it is now 4++++++.

[Mtnchick]

That wasn't what I meant -- I should have been more clear.  I meant that perhaps loans that had had a recent payment before the charged-off business started were left with the collection agency and not charged off.  That would make some sense, as loans that were paying, even if not paying full monthly payments or paying less than monthly, would probably benefit from not being charged off, a status that Andrew indicated cannot be left once entered.  Of course, such loans that then stopped paying would have to be re-evaluated for charged off status at some point in the future, and those types of situations are the ones that Prosper is especially bad it, so they may wind up lingering in the twilight zone forever.

It does make me wonder what happens if a loan that is in "charged off/default" status actually makes a payment. Granted, I don't expect any of them to, but what if.........I guess it would go wherever our Chapter 13 payments are........

[Fred93]

This stuff needs to be audited.