Monday, November 12, 2007

Prosper Testing New Credit Agency?

I have no confirmation other than an individual forum post, but it sounds like Prosper's trying out some new collections technique. Is this the legal field test that Doug Fuller referred to in his Q & A? Ahh, endless, unconfirmed speculation. From the forums:

I decided to look at some of my 4+ lates and I see where it says
Collection agency:"NEW AGENCY TEST".

Then it says something like 0.00 collected after 5 days on a 4+ late.

So does that mean The new Director of Operations is trying different collections agencies?

From the Q&A back in October:

What I’m doing at this point is putting together a pilot legal program. I have identified a group of loans which have already defaulted or are on the verge of default. These loans will be included in our next debt sale. In order to gain the legal standing needed, I’m proposing that Prosper buy these loans for the same amount that the debt buyer would and use these as an initial test.

My thought is to do this with a group of loans from borrowers who are all in California, so we only have to deal with one state’s court system. I have a meeting scheduled for Wednesday with the managing partner of what I consider to be the best collections law firm in California. My hope is that we can formally place these loans with the law firm this month and have the first suits filed in November.

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