Discussion in 'Professional Trading' started by thesharpone, Dec 12, 2007.
Nice spam post
no seriously, I'm a lender there, over $50K,and it's not going as good as I thought
I was wondering if any other traders here have heard of it and are lending there and what their experience has been with them
If this was a spam I would have added an affiliate link don't you think so
Having the web address in the title probably can be construed as spam if you think about it. You don't need to actually post the link because here we are, after all, "elite" and that has to count for something.
The site looks like a joke in my opinion. Basically they're raising risk capital from people like you to make high risk loans to idiots that can't manage money for shit, you know - the typical American.
What is your legal right to pursue defaults? Do you have collateral against the loan? Do you even know what collateral is? I bet the site has some sort of legal ramification to collect and they probably use this to scalp some profits.
So is the site just a glorified collections agency trying to facilitate defaults , hence drive collections?
I'll keep my risk capital in my business of trading, thank you very much.
BTW, if you want to be a loan shark just open a corner money lending operation and go about it the legal way.
Care to share your experiences? Seems like the rates being offered are a bit too good to be true.
Basically a lender bids on a loan, Prosper collects all the bids and gives out a loan to the borrower, if payments are late, Prosper uses collecting agencies to try and collect, after several months these late loans are sold to junk debt buyers. If a payment is made on time you get the main percentage of the return on the loan.
It's an interesting business model and has gotten plenty of exposure. It's far from being a scam or anything like that, but there are risks involved like many other businesses.
yes 25% of my loans are 4+ months late, and will go into default in a few weeks, because they will be sold to junk debt buyers before year end
and only 60% of my account loans is on time
there are websites that offer lending statistics, a good one is http://www.lendingstats.com/
for instance look at the top Prosper lenders, carrey79 is lending close to $1M, if you click on his name (here or on the website) you can find all the details of his loans and brief statistics of his account
I've looked that site over several times iin the last few months for fun. Lots of people trying to pay off their credit cards, then what? Run them up again I'm sure. What grade of borrower have you been funding?
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