Author Topic: Prosper's new legal form  (Read 3180 times)

dagilbe

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Prosper's new legal form
« on: February 01, 2013, 08:42:09 AM »
Includes a mandatory arbitration clause and a class action waiver at the bottom.  If Prosper does something slimy, good luck going after them. 

In Prosper's defense, many companies include these clauses in their contracts, i.e. Comcast.   

Peter

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Re: Prosper's new legal form
« Reply #1 on: February 01, 2013, 11:50:47 AM »
Given the fact that there is an existing class action lawsuit against Prosper it would be a shock if there wasn't that wording in there.

The important thing to note is that investors need to login to Prosper and approve that agreement before they will be able to invest. All Automated Quick Invests are suspended until people approve the new agreement.
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Xenon481

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Re: Prosper's new legal form
« Reply #2 on: February 01, 2013, 11:54:40 AM »
The important thing to note is that investors need to login to Prosper and approve that agreement before they will be able to invest. All Automated Quick Invests are suspended until people approve the new agreement.

Another important thing to note is that it is Prosper's official stance that even if you don't approve the new agreement (and even if you specifically send them notice of disapproval), they will still hold the new agreement as the binding agreement between you and them.
The Motley Fool says to Avoid Prosper Like The Plague.

Read about historical Prosper actions/problems at Prospers.org

Peter

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Re: Prosper's new legal form
« Reply #3 on: February 01, 2013, 12:19:21 PM »
Another important thing to note is that it is Prosper's official stance that even if you don't approve the new agreement (and even if you specifically send them notice of disapproval), they will still hold the new agreement as the binding agreement between you and them.

I am guessing that is because they are transferring all existing notes into Prosper Funding as well as the new notes. So investors get bankruptcy protection whether they like it or not...
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Xenon481

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Re: Prosper's new legal form
« Reply #4 on: February 01, 2013, 12:38:13 PM »
Another important thing to note is that it is Prosper's official stance that even if you don't approve the new agreement (and even if you specifically send them notice of disapproval), they will still hold the new agreement as the binding agreement between you and them.

I am guessing that is because they are transferring all existing notes into Prosper Funding as well as the new notes. So investors get bankruptcy protection whether they like it or not...

They have also used this reasoning for other things like failure to perform debt sales and also recently reducing the principal value of a Prosper 1.0 loan. A loan generated when the contracts between Prosper and Lenders specifically stated that Prosper expressly was denied the power to modify a loan's principal value.
The Motley Fool says to Avoid Prosper Like The Plague.

Read about historical Prosper actions/problems at Prospers.org