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Collection on Late Payments

Under no circumstances should you attempt collection on a late payment yourself. Compliance with all state and federal laws while attempting to collect a delinquent loan is not trivial. When necessary, Prosper ensures all collection activity is performed by licensed and professional collection agencies. Lenders who undertake debt collection (even if they are a debt collector by trade) are in violation of Prosper legal agreements and will undermine the collection agency's ability to do their job. Moreover, in doing so you run the real risk of creating a legal liability for yourself. Learn about Prosper collection agencies

Lenders may not contact a late borrower, the late borrower's Prosper friends, or the late borrower's Prosper group leader with pestering or threatening messages at any time.

Failure to follow these policies may result in a range of actions, including:

Warning
Suspension of Prosper membership
Termination of Prosper membership