Communications Over New Collections Test

Spotted on the forums and via RateLadder. This a continuation of the new collections agency saga where Prosper might've been violating the lender agreement. A mere trifle, really, and hardly worth mentioning.

Prosper has followed up on criticisms and notified lenders that their loans had become test cases. I've always been a fan of doing the Right Thing (TM) even if the average lender wouldn't have been bothered, and I'm quite pleased with Prosper for sending out the e-mail.

Prosper is committed to improving our collections on delinquent loans. To do this, we plan to test collection alternatives to provide lenders with better collections rates across all loan categories.

As a result, we have engaged a new collection agency and we are running a limited test of loans through this agency. One or more loans you own have been selected to be included in this test. To execute the test, we had to move the selected loans from your designated collection agency to the new test agency. We believe this test will ultimately yield better recoveries and we would appreciate your cooperation. The new agency will take steps at least as forceful as your original collection agency. There is no additional cost to lenders whose loans are included in the test.

Tests of this nature are not specifically mentioned in the Lender Registration Agreement, but we hope you will afford us the flexibility and opportunity to innovate in the collection area, to conduct a test that we believe will result in better collection results. If you object to your loan being included in the collection improvement test, please let us know by Tuesday, November 20, 2007, by sending an email to support@prosper.com. We will remove the loan from the test if there are serious objections, and return it to the original collection agency for normal collection.

Thank you very much.

Sincerely,
Prosper