Some good news from Prosper Days 2008 for both borrowers and lenders: Prosper is planning to modify their policy on when payments are pulled from borrowers bank accounts to better match their pay days.
Up until now, the date that a payment is due has always been dependent on the initiation date of the loan. Often times this ended up being at the worst time of the month, for example days before someone’s paycheck arrived in their bank account. Often times this created late payments, incurring borrowers fees and causing the lenders to also lose money as fees are passed on to them.
Soon, payment dates are going to be matched with the borrowers pay day. This is an excellent solution. Prosper is going to target the payment date to match the date a borrower is paid from their jobs. This might not do a lot to lower default rates but will certainly lower the amount of 15 and 30 day late loans as borrowers wait for their next pay period to make a payment.
- At March 3, 2008 at 12:08 AM Duncan said...
Any indication how lenders will know when the payment due date will be? I have seen no visible change that makes this clear.
- At March 4, 2008 at 6:37 AM Anonymous said...
I think its a change that is coming and I also dont know if loans already in the system can be changed.