Sunday, December 23, 2007

Prosper announces debt sale and more aggressive collections

On the official forums, Prosper has announced a debt sale and an aggressive debt collection pilot program.

Debt sale: As reported on December 22nd: "We have recently concluded bidding on a package of Prosper loans and are in the process of negotiating terms of the Purchase Sale Agreement with the winning bidder. We are looking to execute the sale as soon as possible."

Aggressive debt collection pilot: As reported on December 22nd: "Prosper is testing a collection law firm and is recording this on member accounts as 'New Agency Test'. This is a limited pilot to test the process of collecting more aggressively on Prosper Accounts. Thus far, in approximately one month, we have seen an uptick in payments and promises to pay in almost 10% of the accounts and the law firm has had direct contact with more than 1/3 of the accounts in the test. These results are encouraging. Actual suits will be initiated on the non-payers in early January. We expect an additional 5% of the accounts to come to terms once they receive service of process."

I'm surprised that Prosper didn't choose to make these announcements on their new blog. Thanks to Rateladder for notifying us of these changes on his blog (debt sale, debt collection pilot).

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