Just got his in my email inbox this afternoon. I feel it vindicates our decision to pull our money out of prosper.
One of your Prosper loans has defaulted due to bankruptcy. There are insufficient assets available through the bankruptcy to pay the borrower’s unsecured creditors, and therefore you will not receive any further payments on this loan. Proceeds from forfeited group leader rewards, if any, will be credited to your account within 1-2 business days.
Loan: payoffcreditcards (Loan #7990)
Default date: Jun-19-2008
Principal balance before default: $233.73
Loan value before default: $288.26
Proceeds from forfeited group rewards (if any): $0.32
View loan details
Borrowers whose Prosper loans default will have their delinquency and default reported to a credit reporting agency, and will never be able to borrow money on Prosper again in the future. Learn more about defaulted loans.