Comments on: Everybody Hates Prosper

By: RateLadder.com

RateLadder.com — Wed, 07 Feb 2007 00:18:01 +0000

I wrote an article debunking Prosper’s main argument against paying interest. They claim they can’t pay interest becasue it is a pooled account. Hogwash.
http://rateladder.com/2007/02/04/prospercom-lenders-unite-where-is-our-interest/

By: lazymanandmoney

lazymanandmoney — Tue, 24 Oct 2006 14:47:21 +0000

I didn’t know whether Prosper did or not, but since other financial instutitions can give interest on deposits not in use, it’s what I expect from Prosper. As you say, it’s probably due to not having the capacity, but they are pretty well funded from what I understand. I don’t think it would truly hurt them if they gave something small like 1% interest.

By: Tom

Tom — Tue, 24 Oct 2006 10:01:11 +0000

From what I understand, Prosper itself doesn’t earn interest on deposited funds–Wells Fargo does. Prosper may get a discount on banking services in exchange, but they are a money-losing startup at this point. That’s why they’ve cut back on account verification for borrowers who haven’t gotten 5% funded.

Once they have the capability, I’m sure they’ll pay interest on deposited funds. I’d also be happier if they’d let us bid our transferred funds immediately, instead of having to wait 4-6 days, at least for lenders who have a certain minimum account value.

By: lazymanandmoney

lazymanandmoney — Thu, 19 Oct 2006 17:35:19 +0000

That’s an excellent point. I had been using the advanced search, but I’ve been using a very quick search. I haven’t been really looking at all the options available.

By: Empty Spaces

Empty Spaces — Thu, 19 Oct 2006 03:08:30 +0000

when you search for borrowers, you should check the box that filters the ones with verified bank accounts.
atleast you don’t waste time verifying them afterwards!