Texas Investor

[GregTexas]

I've been waiting for years to invest on the Prosper platform.  Does anyone know why Lending Club can pull off getting access to Texas investors but Prosper can't?

This is how they last replied to my inquiry:

"The remaining states require that we complete a securities regulatory process with each of them individually. We do not have any further information to provide. Prosper has been trying to get approval from your state since our relaunch in 2009."

I know that Lending Club allowed accredited investors to access their secondary market notes prior to getting approval. I'm an accredited investor and I only invest in the secondary market anyway.

Their response to my inquiry about that:

"Prosper does have investment fund options available for accredited investors in any state."

I'm only interested in investing in individual notes. Has anyone here that lives in a disallowed state been allowed to buy notes on the secondary market?

[SeattleSun]

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Lending Club is public company (at least for now) and is regulated nationally by the SEC and I think it is called the "Blue Sky Rule" that none of the 50 states can thus forbid them to NOT do business in their state.

Prosper is a private company and thus regulated state-by-state so any state can deny it a business permit. And the Texas regulators still have a bad taste in their mouth after being the epicenter of the Saving and Loans Crisis of the early 1980s.  So they are very risk adverse.

Or something like that.