There has been a minor uproar on the forums over deadbeat lenders/group leaders. That is to say, Prosper.com members that are lenders and borrowers with late payments on the loan given to them. The consensus seems to be that Prosper should be impounding the loan payments they are receiving in order to cover their Prosper.com loan. I completely agree.
I thought I would look into just how many of these deadbeats exist…
There are 2,492 loans to Prosper members that have roles of Lender or Group Leader. Of these, 133 are currently late. 133 / 2,492 = 5.3%. Without breaking this down into credit grades it is hard to say if this is above or below the mean.
Regardless, these lenders should not be receiving the benefits of their lending until they are current as a borrower.
I have a policy about not outing deadbeats for my own protection. In this case, if someone else publishes a list I will stand and applaud.
Related Posts -
Prosper.com Lender Game -- RateLadder_com Initial Update -- 12.61% to 12.61% I am RateLadder. I run this website. I am compelling because you are reading this. This blog documents my journey and is a more extensive writeup of what I am doing and why than any I could provide in a single paragraph. I encourage you to look around. I encourage...... - Prosper.com and Quicken -- The workable solution for playmates that don't get along. Prosper.com and Quicken (or Money) do not play nicely. In fact, they can be downright burdensome to make them bridge the gap. Here I present my workable solution, but this should be addressed by Quicken, Money, and Prosper.com  The heart of the problem is that Quicken doesn't understand the Prosper.com model... Sure......
- Prosper IRR Lender “Game” Feb 07 Update It is time for the February 2007 update of the IRR Lender "Game." This is going to be more about accomplishments during the last month rather than pure calculations.  So without further ado: Highest IRR Model: RateLadder_com 12.86% Largest IRR Model Improvement: Leporello by going from (10.04%) to (5.45%) he improved 4.59%. Lowest IRR......
- Prosper.com Crosses 50 Million Dollars in Loans It took from 2/27/06 until 04/05/2007. Just over one month to go from 40 to 50 million. The pace is still quickening.  Date: Principal Closed: # Loans: # Registrations: # Lenders: # Borrowers: # Groups: # GLs: Historical Interest Rates Credit Grade Group Member Average Rate Less Than 5K......
- Prosper.com Lender Game — Pensioner Initial Update -- 7.08% to 25.23% Pensioner is what he wants to be, it is not what he is. He has the largest dollar amount portfolio in Prosper with a current account value of well over 800K. He is an auditor and accountant by trade. He is local to the San Francisco Bay Area. In addition, he participated......
Related Websites - Prosper Update It's been a long time since I've made a mention of Prosper.com. The reason is that it hasn't been performing as I had hoped. I'm putting money into Prosper though one could conclude that I should stop. What's the cause for the change in my philosophy? Well, I found LendingStats.com......
- Prosper.com Closes Accounts of All South Dakota Lenders Prosper.com recently sent out emails to everyone in the state of South Dakota and informed them that they would no longer be accepting citizens from South Dakota as lenders on their website. They claim there are complicated lending practices which make it excessively difficulty to operate in the state, which......
-
Prosper.com Offering 1% Deposit Bonus to Investors Prosper.com, a company which offers a peer to peer lending service, is offering a 1% deposit bonus to investors that invest new funds into their account between July 1st and July 16th. Prosper.com sent the following email to investors on July 7th, “Just a quick reminder that there’s still time......
-
Prosper and Zopa: Looking into the World of Online Consumer-to-Consumer Lending When most people are short on cash and need a few hundred to a few thousand dollars, they walk down to the local bank and try to persuade the loan officer to give them a loan. If the consumer doesnât meet the bankâs cookie-cutter standards for who can get a...... - Keeping your Prosper.com money working Several people responded to my post on a Prosper.com vs ING return, in which I pitted a 4.25% online savings account return against lending the same amount at 8% on Prosper.com. The 4.25% online savings account outperformed the 8% loan over three years, because the interest in the savings account......
- Group B Lancia Hybrid Vehicles
- Benefits Of Birth Insect & Grub Control Pest & Weed Control Gardening & Plants Yard, Garden & Outdoor Living
- Benefits Of Birth Insect & Grub Control Pest & Weed Control Gardening & Plants Yard, Garden & Outdoor Living Nursery
- Late Summer Perennials Flower Seeds Plants, Seeds & Bulbs Gardening & Plants Yard, Garden & Outdoor Living Nursery
- Group B Lancia Hybrid Cars & Trucks
Categories:
Prosper.com, Statistics
Tags:
8 comments ↓
Hmm.. to add it or not to add it
Do all of the 2,492 lender/group leader(GL) & borrower users have an income stream on Prosper? I’m wondering if the 5% number is overstated, and if so by how much, if the borrower has simply taken a role, but not lent or has no GL income.
It might be overstated… These are all borrowers with loans and roles as lenders/GL. I will cross reference against lenders with loans and make a new post.
You need to break out which are GLs and which are Lenders. Grouping them together does a disservice to the Borrower/Lender group because we know that there is no quality control or commitment required to be a GL.
[...] Well, Prosper has responded via Prosper Andrew [...]
Boo Frickin’ Hoo. Some of you bet on a speculative market and are getting the hose. That’s the nature of the market. You were cool with it when you were thinking about the payback and writing checks to prosper.com.
On principle it sounds like the right thing to do. But would it be legal? The way I understand it, the borrowers/lenders are lien holders on the loan they are receiving payment from, and Prosper is just the facilitator of the debt.
Would it be legal for Prosper to redirect payments and money they do not own to pay an obligation that is not their to pay?
Don’t get me wrong, I am all for it. But is it legal under the current structure? And if not, can it be made so?
I never lend money to people who want to become lenders on prosper.
thats the stupidest idea ever. if they have internet access and they borrow money from their rich uncles or aunts who don’t no anything about the internet, thats one thing.
but otherwise, they’re just creating more competition for me by bidding on high interest paying loans. Prosper should ban borrowers from lending money.
Leave a Comment