Prosper Announces Collections “Early Delinquency” Letter Series

January 4th, 2008 | Uncategorized

I love hearing about collections improvements… Give me more!!!

Sounds like an interesting idea. I am glad it works. (This must have been the test:Prosper In House Collections Letter)
From Doug Fuller on Collections #1:

One of the many activities aimed at improving collections undertaken in the last couple of months was the testing and implementation of an “Early Delinquency” letter series. Although borrowers were already receiving reminder emails and phone calls during the early delinquency period (1 -30 days past due), we thought it worth seeing if an actual letter might drive additional payments. We conducted an initial test in mid-October where half of the early delinquency population was sent a letter and half was not. Measured by the number of manual payments initiated, the results were good. In the three weeks after the letter was mailed 57% more recipients initiated a manual payment (41% vs 26%).

Given this success, a two letter series was produced and a process created to automatically generate and send the letters. The first letter goes out at 15 days past due and reminds the borrower of the “community aspect” of their prosper loan – the money comes not from a bank, but was made possible by a group of individuals. The second letter is generated at 30 days past due and details the various consequences of becoming “delinquent” including collection activities, credit reporting and the possibility of a lawsuit.

Additionally, we have contracted with Accurint (a division of Lexis-Nexis) to provide skip tracing information and are developing an internal process around that data.

Related Posts

pninen in Prosper forums -- Magnificent Writeup on the Lender Costs of Not Paying Interest Here is the post in it's entirety because it is that good: In the early days of Prosper, I estimated that the cost of my idle cash (cash balance waiting to be bid, cash tied up in bids, cash tied up in loan verification, cash tied up waiting for payments......
One Loan Late. Not supposed to happen to AA. What does that mean? Of my 46 loans. 1 is now late (less than 15 days). Here is what Prosper.com says will happen now: What exactly happens if I'm late? Below is the schedule that Prosper follows in the event of a borrower missing a payment due to insufficient funds (NSF). At any point......
Prosper Collections Test In Progress I had noticed several days ago that several (6 out of 15 in collections to be exact) of my delinquent loans had a new agency with the name "NEW AGENCY TEST"... Today I received the following email from Prosper... Prosper is committed to improving our collections on delinquent loans. To......
Prosper Ordered to Cease and Desist by SEC http://www.sec.gov/litigation/admin/2008/33-8984.pdf It appears to me that the ruling is that they have been selling unregistered securities without a license. What does that mean for the lenders? Doesn't the board and company officers have some personal liability too? There is some discussion at prospers.org: http://www.prospers.org/forum/prosper_order_to_cease_and_desist_by_sec-t10903.0.html No one seems sure just yet... SEC: UNITED......
Prosper Blenders 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......

Related Websites

How to Undo The Results of Financial Trauma Whether you’ve lost your home or your job, or your money management skills over the years have left you severely in the hole, it is never to early to start turning things around. You can bounce back from financial trauma, but it will take some effort and dedication on your......
Don't Get a Refund Anticipation Loan Tax season is open now, which means that pretty soon we will file our taxes and hopefully have a nice refund check heading our way. One thing everyone needs to look out for is refund anticipation loans, which are loans given against your federal tax refund. How refund anticipation loans......
Take Action To Avoid Foreclosure Home ownership has long been considered part of the American dream. For the growing number of people facing foreclosure it has become more of a nightmare. Reports show that foreclosures are up 24 percent in the first quarter of 2009. Homeowners who are struggling to make their mortgage payments fear......
Happy Easter to those who celebrate it I hope your Easter is filled with happy memories, good food, and many blessings! Karin To those leaning on the sustaining infinite, to-day is big with blessings. Mary Baker Eddy Mark 16:1 And when the sabbath was past, Mary Magdalene, and Mary the mother of James, and Salome, had bought......
B-to-B Copy Needs to Get Attention Fast This advice, of course, applies to all copy and certainly to B-to-C copy as well. However, I see this problem more on B-to-B websites than on consumer websites. People don't pay attention to your website because you haven't given them a specific reason to. Bob Bly, a master copywriter, makes......