Help > Late Payment and Fee Schedule

Late Payment and Fee Schedule

Below is the schedule that Prosper follows in the event of a borrower missing a payment.

One week before payment is due

You will receive an email reminder from Prosper indicating the date and amount of your upcoming payment.

Day 0: First payment attempt

On the day your payment is due, Prosper will attempt to withdraw payment from your bank account.

Day 1-5: First failed payment

You will be charged a failed payment fee of $15. Failed payment fees are collected and retained by Prosper.
You will receive an email from Prosper indicating the amount due, fees accrued, and notifying you about upcoming payment attempts.

Day 8: Failed payment notification

You will receive another email from Prosper indicating the amount due, fees accrued, and notifying you about upcoming payment attempts.

Day 10: Second payment attempt

Day 16: Second failed payment notification; late fee assessed

You will be charged a late payment fee for being more than 15 days late on your monthly payment. Late fees are the greater of $15 or 5% of the unpaid installment amount. Late fees are passed on to lenders; Prosper does not profit from late fees.
You will receive an email from Prosper indicating the amount due, fees accrued, and notifying you about upcoming payment attempts.

Day 22: Third payment attempt

Day 26: Third failed payment notification

You will receive an email from Prosper indicating the amount due, fees accrued, and notifying you that your loan will be turned over to an outside collection agency for collections.

Month 1: Late fee assessed; loan sent to collections

You will be charged a late payment fee at 46 days past due for being late on the next month of monthly payments. Late fees are the greater of $15 or 5% of the unpaid installment amount. Late fees are passed on to lenders; Prosper does not profit from late fees.
Your loan will be sent to a collection agency partner of Prosper. The collection agency will attempt to collect the amount due and any fees accrued.
Your delinquency will be reported to Experian and TransUnion, two national credit reporting agencies, and will appear in your credit history. Your credit score will be negatively impacted.

Month 2: Late fee assessed; collections continue

You will be charged a late payment fee at 76 days past due for being late on the next month of monthly payments. Late fees are the greater of $15 or 5% of the unpaid installment amount. Late fees are passed on to lenders; Prosper does not profit from late fees.
The collection agency assigned to your loan will continue attempting to collect the amount due and any fees accrued.
Your delinquency will be reported to Experian and TransUnion, two national credit reporting agencies, and will appear in your credit history. Your credit score will be negatively impacted.

Month 3: Late fee assessed; collections continue; charge-off notification

You will be charged a late payment fee at 106 days past due for being late on the next month of monthly payments. Late fees are the greater of $15 or 5% of the unpaid installment amount. Late fees are passed on to lenders; Prosper does not profit from late fees.
The collection agency assigned to your loan will continue attempting to collect the amount due and any fees accrued.
Your delinquency will be reported to Experian and TransUnion, two national credit reporting agencies, and will appear in your credit history. Your credit score will be negatively impacted.
You will receive an email from Prosper notifying you that in one month, your loan will be charged-off, and the entire balance will be collectible in full as of the charge-off date.

Month 4: Loan charge-off; credit history and credit score impacted

After four months of delinquency for any single payment, your loan will be charged-off and the entire balance will be collectible in full as of the charge-off date.
Borrowers whose loans have been charged-off will not be allowed to borrow again on the Prosper marketplace.
The charge-off will be reported to Experian and TransUnion, two national credit reporting agencies, and will appear in your credit history. Your credit score will be negatively impacted.

Subsequent months: Loan eligible for debt sale; credit history and credit score impacted

Once charged-off, your loan will be eligible for sale to a debt buyer. Upon sale, any proceeds from the sale will be distributed to lenders.
The charge-off will be reported to Experian and TransUnion, two national credit reporting agencies, and will appear in your credit history. Your credit score will be negatively impacted.