Author Topic: Michigan Lender activity suspended  (Read 4188 times)

jaymz

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Michigan Lender activity suspended
« on: January 14, 2014, 08:25:14 PM »
just got an email:


Quote
Prosper Funding LLC's license renewal in the state of Michigan has not yet been approved. As a consequence, investors in Michigan will be unable to make new investments on the Prosper platform or sell existing Notes on Folio until we receive that approval. Please note that your existing investments will not be affected, and you will still be able to log in to your account, receive payments on your existing Notes, and withdraw funds from the platform.
We will notify you when the ability to make new investments and resume trading on Folio is reinstated.

Xenon481

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Re: Michigan Lender activity suspended
« Reply #1 on: January 14, 2014, 09:03:37 PM »
Once again, there is absolutely no legal reason for Prosper to deny you the ability to sell your notes. I can understand people in unlicensed states not being able to purchase notes, but there is no legal reasoning behind them denying you the ability to sell your notes.
The Motley Fool says to Avoid Prosper Like The Plague.

Read about historical Prosper actions/problems at Prospers.org

core

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Re: Michigan Lender activity suspended
« Reply #2 on: January 14, 2014, 09:28:02 PM »
Once again, there is absolutely no legal reason for Prosper to deny you the ability to sell your notes.

They don't want to let Michigan people flee with their money in a panic once those folks find out the real reason the license renewal was held up.

Rob L

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Re: Michigan Lender activity suspended
« Reply #3 on: January 14, 2014, 09:47:26 PM »
We will notify you when the ability to make new investments and resume trading on Folio is reinstated.

Wow. Everyday defaults are part of the game, but this is the type risk (along with cyber crime) that give me the most worry with my p2p investments.

jaymz

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Re: Michigan Lender activity suspended
« Reply #4 on: January 15, 2014, 12:10:51 PM »
They don't want to let Michigan people flee with their money in a panic once those folks find out the real reason the license renewal was held up.

What do you think the real reason is?

mo

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Re: Michigan Lender activity suspended
« Reply #5 on: January 15, 2014, 02:12:56 PM »
They don't want to let Michigan people flee with their money in a panic once those folks find out the real reason the license renewal was held up.
What do you think the real reason is?

    Who knows but it wouldn't be the first time Prosper has gotten itself in legal trouble in Michigan.

http://www.michigan.gov/documents/dleg/Prosper_Marketplace_Inc._-_Administrative_Consent_Order_285088_7.pdf

dontvote

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Re: Michigan Lender activity suspended
« Reply #6 on: January 15, 2014, 03:44:53 PM »
They don't want to let Michigan people flee with their money in a panic once those folks find out the real reason the license renewal was held up.

What do you think the real reason is?

My bet is either someone at prosper kicked someone's dog in the state dept who gives the approval (ProsperGate?) or prosper just filed something too late or the department is slow-to-worse. It's unprofessional and annoying and should cost someone's job somewhere but I would think it's not something fundamental that is wrong.

OR, Michigan suddenly leads the nation in being on top of their regulatory responsibilities and general ability to sniff out wrongdoing http://goo.gl/UI7Itp.
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Peter

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Re: Michigan Lender activity suspended
« Reply #7 on: January 18, 2014, 09:17:11 AM »
Wow. Everyday defaults are part of the game, but this is the type risk (along with cyber crime) that give me the most worry with my p2p investments.

Over the last 3+ years that I have been following this industry this has happened multiple times. Lending Club was suspended in Florida and Maine I believe at different times and Prosper has had issues with other states as well.

Now, I haven't had any discussions about this particular incident but in the past the cause has usually been a bureaucratic holdup at some state regulatory agency and it is resolved in days or sometimes weeks.
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p2pguy

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Re: Michigan Lender activity suspended
« Reply #8 on: January 22, 2014, 11:37:12 AM »
its been a week now.....still not resumed the activity.....Prosper???.....how long??

Peter

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Re: Michigan Lender activity suspended
« Reply #9 on: January 28, 2014, 04:04:55 PM »
Just heard back from Prosper management today and the Michigan problem has been resolved. Investors should be hearing from Prosper later today.
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jaymz

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Re: Michigan Lender activity suspended
« Reply #10 on: January 28, 2014, 10:41:11 PM »
Thanks - got an email:
Quote
Prosper's renewal application in the state of Michigan has been approved. Michigan investors are now able to resume making new investments on the Prosper platform as well as to trade on Folio.
also, the aqi grabbed a couple loans.