One of the downsides of p2p lending service Prosper.com are high default rates. Results from collection attempts are low.
In an attempt to test alternatives to the existing collection process Prosper in January selected 66 cases of nonpaying borrowers and turned them over to the law firm Hunt & Henriques to pursue these cases in court.
Fred 93, one of the lenders on these loans researched the status of the court cases himself, dissatisfied that Prosper did not inform him on the status, which he says Prosper initially promised to do monthly.
According to Fred93’s findings, Prosper.com so far lost 6 cases and won 1 case.