Crashing & Burning At Prosper.com

by James & Miel on October 28, 2008 · 1 comment

It was likely to happen eventually, four more of our loans on Prosper.com have defaulted. While the total loss was only of $287.7, its a bit disheartening to see the dollars evaporate into nothing.

Part of the reason for the delinquencies was that we specifically targeted risky borrowers in the hope of gaining a high return. We will probably continue to lend online, but will only lend to those with good credit. We are in the processes of pulling our money out of prosper and will likely be putting our money into prospers competitor LendingClub.com. LendingClub has stricter criteria for identity and employment verification and excludes borrowers with low credit scores.

Here are the bad loans:

Loan: Debt Consolidation and Unexpected Bills! (Loan #4171)
Charge-off date: Oct-28-2008
Charge-off balance: $62.15

Loan: Debt consolidation – relist (Loan #8628)
Charge-off date: Oct-28-2008
Charge-off balance: $51.40

Loan: Refocused and Ready To Go (Loan #13249)
Charge-off date: Oct-28-2008
Charge-off balance: $125.42

Loan: Debt Consolidation (Loan #16211)
Charge-off date: Oct-28-2008
Charge-off balance: $48.73

Thanks,

James



{ 1 comment… read it below or add one }

1 Anonymous March 3, 2010 at 6:27 pm

And you so tried to do?

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