Debt Sales

[WES]

Hi Peter:

Just had my first charge-off on Prosper. 

Just to be clear, I understand that the chances of recovering anything on this note are slim, but I also see that Prosper has done Debt Sales in the past. But I don't see any Debt Sale history since 2007. Is this something that the "New" Prosper no longer does?

[Peter]

WES, I will try and get a definite answer for you but I have heard that they still do this.

[DiligentiaLLC]

Peter, I see what WES is talking about here:

http://www.prosper.com/help/topics/lender-debt_sale_history.aspx

Over 700 bad debt notes sold in the month of December 07 alone - and then everything stopped???

Any word from Prosper on this?

[Peter]

Hmmm. That is interesting. I am working on a post on debt collection practices and I hope to get to the bottom of this. Stay tuned to the blog.

[DanB]

I remember reading somewhere that Prosper was intending to hold on to their bad debt portfolio until such time that they could get more than a just a Happy Meal for them............but that was during the '08 meltdown.

[Peter]

Dan, Always appreciate your help....but I think I will pass on this investment opportunity.

[NoGoodDeed]

Hmmm. That is interesting. I am working on a post on debt collection practices and I hope to get to the bottom of this. Stay tuned to the blog.

Did that post go up?  Can somebody direct me to it?
In the agreement with Prosper that early Lenders signed, didn't Prosper obligate themselves to Debt Sales?

[DiligentiaLLC]

Then get that guy (USMC Retired) that used to invest in Lending Club & who asked endless questions (when it was allowed), to do the collections. No one is more meticulous, patient, persistent, repetitive.

hahahah I used to love that guy.  I always felt like investing with him was a social investment stamp of approval.   

It's a shame Lendstats can't report on how well he did.

[Peter]

Hmmm. That is interesting. I am working on a post on debt collection practices and I hope to get to the bottom of this. Stay tuned to the blog.

Did that post go up?  Can somebody direct me to it?
In the agreement with Prosper that early Lenders signed, didn't Prosper obligate themselves to Debt Sales?

I have not been able to get enough information to put a blog post together yet. I am still working on it but both Prosper and Lending Club are not very open to sharing their exact collection procedures.