Wednesday, April 9, 2008

Prosper responds to Lending Club's pause

Netbanker has obtained a statement from Prosper on Lending Club's abrupt lending pause.

"Person-to-person lending is an increasingly popular way for individuals to borrow and lend money at attractive interest rates. Understandably it must be done in a secure and trusted way. While we’re not in position to comment on another company’s regulatory stance, Prosper believes that the way we have structured the Prosper marketplace is in compliance with applicable state and federal laws. Currently Prosper has over 650,000 members, and more than $130 million in loans have funded through the Prosper marketplace."

Also, check out Personal Loan Portfolio for a nice round-up of all the news and blog posts about the Lending Club halt.

As many of my readers know, I have written several guest posts for the Lending Club blog. This announcement came as a surprise to me. I do know that Lending Club does plan on maintaining their blog and will continue to fund loans to new borrowers. The halt has been described as an effort to pave the way for future strategic efforts. Under the circumstances, Lending Club will no longer present at the upcoming FINOVATE conference.

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