tag:blogger.com,1999:blog-2211186543498959369.post2725346573724240637..comments2023-04-21T23:01:35.558-07:00Comments on Fred93's Blog: Prosper.com - one of your loans was charged offUnknownnoreply@blogger.comBlogger6125tag:blogger.com,1999:blog-2211186543498959369.post-64340748191875607952009-02-19T22:19:00.000-08:002009-02-19T22:19:00.000-08:00wow, that's something.. Do you get to write them o...wow, that's something.. Do you get to write them off as loan losses? Or does the Charge-offs offset your 1099 at the end of the year. What is your experiences on that? <BR/>http://p2plend.blogspot.comChris Chiuhttps://www.blogger.com/profile/12218129503326634440noreply@blogger.comtag:blogger.com,1999:blog-2211186543498959369.post-6051313524619278332009-02-16T20:22:00.000-08:002009-02-16T20:22:00.000-08:00Fred,Thanks for being a vigilant and informative P...Fred,<BR/>Thanks for being a vigilant and informative Prosper lender. I too have seen many charge-offs, and I am not happy about it. Let me know if there is anything I can do other than rue the day I created a prosper account.Andrew Wilsonhttps://www.blogger.com/profile/15687715167246053185noreply@blogger.comtag:blogger.com,1999:blog-2211186543498959369.post-23185148959103354512009-02-12T18:48:00.000-08:002009-02-12T18:48:00.000-08:00Hi Fred. I just read your "open letter" to Prosper...Hi Fred. I just read your "open letter" to Prosper and I thought it was great.<BR/><BR/>Here's an idea:<BR/>Instead of giving 20% of the collection proceeds to the agency, Prosper should give the agency 20% of the collections PLUS 20% all subsequent payments from the late loan. For most loans, until they are amortized down to the nub, this should align our incentives pretty well.<BR/><BR/>Also, perhaps only apply this to loans over 45 days late, as some loans do cure themselves. However, I've found that once they are much over a month late, automatic curing is pretty unlikely.<BR/><BR/>I bring up a system like this, instead of simply timely sales of late loans, for several reasons.<BR/>1) Prosper loans are a new phenomenon, and not well understood by the marketplace (i.e. collection agencies)<BR/>2) The potential market thus will be pretty illiquid and inefficient... And pricing may be disadvantageous to us lenders<BR/>3) Prosper loans' unclear legal standing.<BR/><BR/>Thus, until late loans can be sold efficiently, and for a decent price, a system like this can be used to both align incentives and allow everyone to season themselves in the collection process. The collection agencies would not need to front any capital--which lowers their risk dramatically and induce them to participate.<BR/><BR/>A system like this, (or timely sales of late loans), would serve well for principals of a decent denomination. However, a lot of Prosper loans are for relatively small amounts. What is a good way to align incentives with these, without immediately impairing their value once they go late?Mike Thttps://www.blogger.com/profile/02533667143855420661noreply@blogger.comtag:blogger.com,1999:blog-2211186543498959369.post-6466048700303558792009-02-12T11:00:00.000-08:002009-02-12T11:00:00.000-08:00Indeed, I missed it due to bad UI design. Thanks!...Indeed, I missed it due to bad UI design. Thanks!Benny Smythehttps://www.blogger.com/profile/14843210841640208626noreply@blogger.comtag:blogger.com,1999:blog-2211186543498959369.post-3753856128742087942009-02-12T01:25:00.000-08:002009-02-12T01:25:00.000-08:00Benny, I believe you can choose to receive these m...Benny, I believe you can choose to receive these messages in your prosper account preferences.Fred93https://www.blogger.com/profile/04583267546571056988noreply@blogger.comtag:blogger.com,1999:blog-2211186543498959369.post-42697289727360145102009-02-11T15:23:00.000-08:002009-02-11T15:23:00.000-08:00How are you still getting those emails?My loans ju...How are you still getting those emails?<BR/><BR/>My loans just stealthily sneak into the "Charge-offs" category.<BR/><BR/>Is there some hidden setting that I missed?Benny Smythehttps://www.blogger.com/profile/14843210841640208626noreply@blogger.com