Problems with

I started using in late 2008. The hope was to find an investing platform that would pay a better return than the paltry 2.5% I get at my local credit union.

Unfortunately, peer-to-peer lending has failed me via The notes I currently hold through Prosper once closed, will not be re-opened for a few reasons.

1. The Return Sucks . . . really bad

Prosper’s website is boasting a seasoned return of 10.46%. Ha!

Of the funds I lent, about 30% were not paid back.

This in and of itself is enough to flee from Prosper.

2. Statements are sporadic.

Monthly statements should be just that, monthly. Not with Prosper. My January 2012 statement just arrived today. It should have come the second week of February.

Statements do not arrive with any sense of regularity.

3. There are accounting discrepancies and no explanation for them.

Around December 2010, $11.50 went missing from my note value. It was not written off or otherwise accounted for.

I contacted [email protected] and asked for an explanation. $11.50 is not going to break the bank when I’m already losing 30%, but I want to know where it went.

They responded that they were aware of the issue and would be working to address it in January 2011.

The last message I received from [email protected] was:

Dear Mark,

Thank you for the follow up email. We do also see the discrepancy, once a plan is made for these statements we will email you with further details.

Thank you for your patience in this matter.

For future reference, your Prosper support case number is XXXXXXXX.

Prosper Customer Support

Fast forward to today. . .

I still don’t have an explanation and Support will no longer respond to my messages reminding them that the problem is not fixed.

Of the three reasons above, number one is enough to avoid Prosper. However, the last two issues indicate a larger red-flag of failed customer service and a lack of an accounting foundation that can accurately track customer funds.

Do yourself a favor and avoid