On Prosper an individual that is both a borrower and a lender has been given the nickname blender.

Back in Febuary I wrote about blenders that were late on their borrower loan: Please Close Major Loophole for Deadbeat Lender/Group Leaders.

It seems that after a week or so of the Prosper Forums ranting about this issue and a suspension of a major (>100K) lender for impersonating a Prosper employee, that Prosper has finally said what it will do about the issue…

Here is a diret post from Shira posted on 8/14/2007 at 3:27pm…

Hi everyone,  

Thank you for raising the issue of late Lender-Borrowers to us.

As of today, all accounts of Lender-Borrowers who are 30+ days past due have been put on hold. This means these Lender-Borrowers won’t be able to place bids or send out group invitations on Prosper until their loans are brought current.

By the end of this year, we expect to have this process automated, but until then we will manually put 30+ days past due delinquent Lender-Borrower accounts on hold.

We are exploring whether and under what conditions state law will allow us to automatically apply lender funds if the lender is a delinquent borrower. We also expect to have an answer to that question by the end of the year.

Beginning with our next site update, borrowers who are also Prosper lenders will be able to apply their Prosper balances to their existing loans themselves, rather than have to move the money to their bank account first.

Sincerely,

Shira

We are exploring whether and under what conditions state law will allow us to automatically apply lender funds if the lender is a delinquent borrower. We also expect to have an answer to that question by the end of the year.

Hi again, 

At the present time, we feel we cannot keep a person from their money. However, all transfers on held accounts must be initiated by Prosper. It’s the same issue as the state law conditions: we are exploring whether state law allows us to truly hold funds or apply them to delinquent loans. I’m sorry if this is an unsatisfying answer. As I said above, we expect to have an answer to this issue by the end of the year.

As for group leaders who are also delinquent on their loans, they will also be addressed in the automated solution we are working on for year-end.

I hope this clarifies your questions.

Thanks,

Shira

• Prosper Webinars I am wondering if anybody has gone to one for the Prosper Webinars on lending, borrowing money, and group leading. I have been receiving email invitations for several weeks, but I don't see how they would help me.  If you have gone to one of them can you tell me......
• ProProsper -- Professional Tools for Prosper Lenders I have created a new site... It's free and supported via ads and donations. ProProsper Professional Tools for Prosper Lenders Loan Rate Analyzer Standing Order Analyzer Loan Everlate Analyzer Personalized IRR Tracking Daily Email Alerts Lender Tracking Summaries with Links to Listings Bid On By Lenders You Follow Listing Tracking......
• WSJ Features ProProsper in P2P Lending Article Options Grow For Investors To Lend Online -- More Sites Join Prosper.com In Luring the Risk-Tolerant; Hammered by Late Payments...  Here is the segment on ProProsper: Over a dozen independent Web sites, mostly geared to Prosper lenders, have emerged in recent months to help lenders make better investing decisions. ProProsper.com, for example,......
• Can Prosper Pay Interest? Please note the title (vs Should Prosper Pay Interest).  One of my most viewed articles at RateLadder is Prosper.com Lenders Unite: Where is our Interest?... I was reading a online Fortune article (What PayPal does with your money), which brought up the age old (in Prosper terms anyway) question...  Will prosper......
• ProProsper -- Professional Tools for Prosper Lenders Is Now FREE   It's now free and supported via ads and donations.    ProProsper Professional Tools for Prosper Lenders Loan Rate Analyzer Standing Order Analyzer Loan Everlate Analyzer Personalized IRR Tracking Daily Email Alerts Lender Tracking Summaries with Links to Listings Bid On By Lenders You Follow Listing Tracking and Summaries with......

• Requirements on Payday Loans Demands Loans that high issue over until the next payday is a form financial solutions that can help you avoid overdrafts, utilized to fix your car, pay off utility bills, etc. the structure of these loans are basic in form since most lenders outlining the same guidelines. Many lenders of loans......
• On Prosper.com I started seeing posts on Prosper.com only recently. It's intriguing. This site brings people who want to borrow money to people who want to lend it. (And takes a little money from both sides to keep the lights on, but hey -- I didn't expect it would be for free!)......
• In Defense of Prosper.com - A Look at the Investment (Jonathan at My Money Blog has a very in-depth two part review of Prosper.com. My Money Blog is one of my favorite sites, which is why it’s in my blog roll and feed reader. It’s worth familiarizing yourself with that article before continuing here with my rebuttals.) 1) "It's not......
• 3 Ways to Smooth Out Big Expenses When our financial turnaround was underway there were a couple things that often derailed our plan. Emergencies seem to come in waves of twos and threes, constantly draining our emergency fund. But emergencies weren't the only thing that got us. The big expenses that managed to sneak up on us......
• State Lawmakers Cracking Down On Payday Loans Over the last year, many state governments have decided that they have had enough of the predatory practices of the payday lenders taking advantage of the people in their states.  Laws have been passed in some states capping the interest rate that the companies are allowed to charge or......

• 10 Year Warranty Pool & Spa Covers Pools & Spas Yard, Garden & Outdoor Living
• New Year Holiday, Seasonal Collectibles
• Group B Lancia Hybrid Cars & Trucks
• Hold All Soil Moisture & pH Meters Garden Tools & Equipment Gardening & Plants Yard, Garden & Outdoor Living
• Current Year, Next Year Calendars Paper Collectibles

News, Prosper.com

azerbaijan, mozambique