One of the takeaways from "Prosper Days 2008" is that Prosper is going to start filing law suits for collections of defaulted loans.
Prosper is planning to starting the process slowly, as of today, a total of 5 suits have been filed in California with more on the way once the process is smoothed out. It appears a total of 74 defaulted loans are planning to result in suits within the next month or so.
This is very good news for Prosper lenders who have endured a higher than average default rate. Other signs are starting to show progress by Prosper in this area which will improve relations with lenders and create a ‘tighter ship’ with borrowers more aware that defaulting on a loan could have more serious consequences than just a bad mark on a credit report and annoying letters and phone calls.
- At March 18, 2008 at 9:52 AM Anonymous said...
I don't understand, I thought that the loan contract was being established between the lender and the borrower.
Thus, Prosper has no contract with the borrower and can't sue him.
Or can he?