Quote from: bamalucky on November 05, 2009, 12:11:19 pm -I'm actually tired of turning over 17% to a collection agency that is in all likelehood doing nothing to make borrowers pay & said borrowers were probably gonna pay anyway. I just believe you are barking up the wrong tree here. Now having said all this, and defending Prosper in this case, is leaving a bad taste in my mouth. Nothing more, it is not a blanket offer to all borrowers, just to those who are flaky enough already to eventually default. So this becomes just another tool for us to collect a little more before that specific borrower goes belly up. Most borrowers have to realize that this suggestion will cost them more overall (late fees, additional interest, and larger payments later). The process in the majority of loans is a simple (probably single) letter sent out and hope that scares the borrower into paying up. Sending to Collections is a joke, and there is no point in even thinking they are doing anything to help the actual collection process except maybe in large loan sizes. This plan will only be offered if the borrower is already defaulting. The ones who will do this are already a lost cause in my book, and are ripe for defaults anyway. Ira01 (and maybe you) is making the assumption that because a borrower can get away with something that they (or a large number of them anyway) will automatically do it, even if it hurts them in the long run. Prosper is just allowing a mechanism (yes against the LRA) so that the lenders may end up with a little more in their pockets instead of the immediate turn over to outside collections, and leaving the agency with a big chunk of any of the funds collected. Borrowers can already do this of their own accord without Prosper offering anything, see your item one. And those are the ones most likely to slow or discontinue paying anything anyway. Current borrowers will probably not even be aware of the offer it will only be those on the ropes (already late) that will avail themselves of it. Yes I fully realize it, but I do not think he (nor you, if you agree, since you did not state your position) is correct in that assessment. Why would you assume I don't? Because I do not agree? ![]() Quote from: bamalucky on November 05, 2009, 12:09:20 pm -Do you even realize what Ira is saying? That this is gonna make current payers stop "because they can" Maybe bitch a little more in the meantime is all. Quote from: bamalucky on November 05, 2009, 12:09:20 pm -what is a contract if you just decide you don't want to abide by it?ĭone deal, so what are you or I going to do about it? I am for the change, so will do nothing. But if this thread is any indication that is probably the case. This might have been a case where some minority of the lenders screamed bloody murder about how Prosper was not living up to its terms and forced them to charge it off. If Prosper believes it can accept partials and not charge off then more funds should come to lenders on those individual loans. Half payments are better than none, even if eventually that specific borrower or Prosper says that's it. Quote from: bamalucky on November 05, 2009, 12:09:20 pm -Maybe you need to read how New Horizon had a loan paying half payments till Prosper deemed it "charged off"Īppears to me you are making my point. It's your money, so what do you think about this idea?" Or post here saying, "Hey, we're thinking of accepting reduced payments from borrowers who claim hardship. Take a poll, and if the change doesn't violate the LRA and the vast majority of the lenders support it, then do it. If Prosper wanted to make a change that would benefit lenders, they would ![]() Yet another example of how Prosper violated the LRA, supposedly for the benefit of lenders, but in reality wound up screwing lenders more. I think it was perfectly predictable (and predicted by many people here, including myself) that Prosper's "charge-off" scheme was going to suck for lenders, and that is exactly what happened. I'm actually tired of turning over 17% to a collection agency that is in all likelehood doing nothing to make borrowers pay & said borrowers were probably gonna pay anyway. ![]() What is a contract if you just decide you don't want to abide by it?ĭo you even realize what Ira is saying? That this is gonna make current payers stop "because they can" Maybe you need to read how New Horizon had a loan paying half payments till Prosper deemed it "charged off" Quote -No, in this case I do not think so. Collections – Hardship Arrangement are Benefiting Lenders
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