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.
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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.
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