Saturday, March 1, 2008

Waterboarding not part of Prosper's new collection strategy

Many lenders are pleased with Doug Fuller's new aggressive collection efforts. It was, however, a little surprising when the Consumerist briefly reported yesterday that Prosper is facing a lawsuit for waterboarding employees after confusing Prosper with Prosper Marketplace - two separate companies.



The report claimed, "Online peer-to-peer loan-making site Prosper is the subject of an unusual lawsuit: 'A supervisor...is accused of waterboarding an employee in front of his sales team to demonstrate that they should work as hard on sales as the employee had worked to breathe.'"

The report linked to an article in the Salt Lake Tribune, Employee's suit: Company used waterboarding to motivate workers, about a motivational coaching business in Utah named Prosper, Inc. This was briefly confused with Prosper Marketplace, Inc., the P2P lending company.

This is not the first time name confusion has caused problems for Prosper. Two months ago Prosper's legal team sent a report to Prosper Report accusing the site of cybersquatting, trademark infringement, and unfair competition. Prosper Report published a copy of the official forums which had previously been deleted by Prosper.

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