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


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  • John

    This is intriguing.  I’ve had a great experience with Prosper.  My investing goes back to the summer of 2008.  In the early days, I had some bad notes, but I diversified pretty strongly between notes, so it didn’t hurt too bad.  After the relaunch, my return has been much better and the number of bad notes has been substantially reduced.  I’ve had very few bad notes since the relaunch.  Again, I diversify like crazy, and the bad notes I have had have been mostly D or E ratiings.  I calculate my total loss rate to be 5%.  That’s not bad.  I can’t speak to your other concerns, but as far as the return and loss rate goes, I’m very happy with Prosper.

  • Kurt

    I have had a good experience with prosper, I have been involved for over a year. I manually select all loans, and have a seasoned rate of a little over 17% and non-seasoned of about 14%. My formula is to scan for those who have any delinquent status, I choose those with none. I also check and make an assumption for stated income, I am wary of those with 100k and high interest loans. One last thing, among my other decision ideas, is they (98.2123123% of the time) must have taken the time to right why they are asking for a loan. Live well and prosper.

  • Kurt

    *write should be in the second to last sentence…

  • Sucks sucks. Nobody repays their debit and after a few months they just wipe it from the books and call it a day. You are just SOL..

    Don’t put a single nickel into those jokers.

  • Jay

    I’ve had a great experience on Prosper. My returns are excellent and the customer service has been great. Since 2009, their returns have been stellar and you can’t combat that. They learned their lesson to assign the interest rates to borrowers themselves (which they now do), and also to tighten up the requirement to get in, atleast a 640 credit score. is a great place to make good money on investing in solid personal loans.

  • Disgruntled PROSPER Customer

    I posted this somewhere else, I’m posting this here as well to spread the word. Karma.

    I don’t want to leave my name for fear of retribution (They have many sensitive documents and could do some damage to my identity) But I have to agree with this poster… The customer service at PROSPER is offensively horrible! They do not give a flying F- about you, and won’t spend one second to remedy the simplest issue that may be a stumbling block for THEM to get your loan through to origination resulting in you being DENIED for a loan.

    I Tried to get a loan with Prosper for 25K, (The most they will lend out) I make around 100K a year, get a tax return of around 15K per year and a bonus of around 20K a year, so I make good money… My “Experian Plus” credit score was about an 800, no problem there. My loan funded in under 4 days. Good to go! (Or so I thought), I am an honest person, and I planned to pay it back in 2 years, not 5. I have paid off many loans in the past and never misses a payment, and would have had no issues paying off this one as well making everybody involved happy, but that was no to be. I started uploading the necessary paperwork and had it all uploaded within a day. The problem started because I went from contractor status to full-time the year before so my bonus was pro-rated for one month and apparently they couldn’t wrap their heads around this. Really? Is it really that hard to multiply the amount in my check by 12 and add the tax back in to see how much I will get that year and compare it to what I claimed?!

    Every time I called I got a pissy, huffy, bubble gum snapping 16 year old on the phone that just oozed indifference and contempt for me when I was being perfectly nice and patient despite the fact that I wanted to scream into there ears until the “Whatever” attitude blew out the other side. I was simply trying to explain my situation (Which was not complicated, nor was I long winded). I had one girl that would raise her voice to the point of yelling over me EVERY TIME I tried to say a single thing in a tone that can only be described as “Bitchy”. Mind you I kept my composure to be the bigger person as not to escalate the situation, after all they have my future in their hands and I didn’t want to screw that up by pissing off a immature teen who has my SS #, address, etc. right in front of them, and would have no ethical quandary about emailing my info to the world. I got the sense she didn’t give and S- about her job. What kind of customer service is that!? It didn’t end there, I got another gem on the phone later on who was as rude and unhelpful as the first.

    The email system… I am all for no-contact online systems you can breeze through to get something you need done – as long as they work. I felt like no one was home, and I was getting emails from Robo-tron 5000. I would get a “We could not verify yada-yada” email, at which point I would try to email them back but NO ONE would EVER get back to me. Don’t tell me there is a problem over email and then disappear never to be heard from again. Naturally I’m going to have questions after an email like that… Like IDK, “WHY”!?, or, “What can I do to help you help me close this loan!?”… nope, nothin’. Try emailing them back, I dare you. You think you’ll get a response? Good luck.

    Long story short, Prosper’s system is flawed, and their customer service is the WORST I have ever encountered. Steer clear, their rates are not that great anyway… 11% when I have an 800-ish credit score!? Are you serious!? I went to my Credit Union and they gave me a 9.5.

    I will never even attempt to use them again. And I’m letting everyone I know how bad my experience was in an attempt to either make Prosper wake up and fix the problem, or go down in flames.

  • The returns are much better now – as is the economy.  You should try it – they’ve got a 4% cashback bonus going on right now if you open a $25k account.  That’s a heck of an interest rate cushion – and, additionally, their automatic underwriting algorithm is NICE.

    Renton wrote about the bonus deal on

  • Amanda

    Prosper canceled my loan after several weeks because I played phone tag with a representative. He called me on my mobile while I was at work. He left me a message and as soon as I could I called him back and got his voicemail. I left him a message. This happened 2 times. He tried calling me a third time, again – while I was at work, did not leave me a message and minutes later my listing was canceled.

    My loan was fully funded. I was a AA borrower and I provided them with every bit of documentation they asked for in a timely manner. They had all of my personal information – all of my financial information. BUT, because the representative whose job it was to contact me on the phone failed to do so, my loan was thrown in the trash. I was NEVER told that if I didn’t talk to the Prosper representative on the phone in a certain amount of days that all of my hard work was going to be wasted.

    In summary, this was a VERY disappointing experience with a company that does not care about people.

  • Kevin Hung

    Here are my investing results with Prosper.

    Notes acquisiton cost $12,420.
    Principal charge-offs: $4,262.88

    Total charged-off notes: 95
    Toatal notes paid in full: 98

    Besides lost my principal, I had to enter very long data into my income tax filing.

  • TheTRUTH

    Guess my question is, to the borrower here who has an “800 ish” credit score, is why he/she would trahs talk prosper and then think that their approved 9.5% loan was some kind of deal. If you make the kind of money you SAY you do, and make the $125K plus you SAY you do per year, then why would you ever accept a 9.5% interest rate from anywhere? I make about 80K per year and can go to my credit union any day of the week and get 25K unsecured for about 4.5% and just to be upfront, I’m not anywhere near “800 ish” in my credit score. Actually, I run about 710 FICO. So, you’re making something(s) up in your story, or else you’re just that gullible to a bad bank.

  • Lisa

    (( This a COMPLAINT ))! Listing started on a friday was F
    ULLY funded by Tuesday after 1:00pm. Now here’s where the FUN begins! From Friday they had been requesting copy of id and canceled check. Everything else was completed and a go. Preapproved the whole nine yards. I’ve sent the copies of id and canceled check over 20 times. They were peristant in sending NUMEROUS emails stating they need id and canceled/voided check. The following Friday I receive a phone call from Mr Prosper Agent to call him back. Called
    twice, left messages. Even sent a email to let him know I’m trying to contact him. After 3 hours of WASTING TIME, not including from this past week!!!! I logged into STUPID PROSPER.COM checking out my account status/listing page. Nothing and no notice of emails. Just after (5:00pm) glens there’s an email stating ACCOUNT CLOSED, we could NOT verify information you provided. Bloody idiots COULD NOT verify my canceled/voided check?!?! Damn LIARS! At this point I’m convenced the only thing their doing is FRAUD, and IDENTIY theft! After 8 emails stating they NEED VOIDED/CANCELED CHECK. Give me a FRIGGIN break, took the pictures 12 TIMES and at different angles/ways!!! Will NOT RECOMMEND to any one and now I’ll have to WATCH MY TRW’S, due to them REQUESTING SAME DOCUMENT over, over, over AND over!!! I RECOMMEND LENDINGTREE.COM. What gets me is I probably have a better credit rating then they do!” Oh that’s RIGHT I DO! I wasn’t the one SUED over FRAUD! Good luck PAYING all those “BORROWERS”back! Enough said, thumbs down and no stars!! Big FAT GOOSE EGG!

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