September 19, 2008

Collection Refunds Update

By Prosper

We have completed the programming and testing on the routine to apply collection account refunds to lenders impacted by the change of accounts from PennCro to AmSher. We are planning to do the initial run of the program on September 22, 2008.  The refunds will include interest on the overage. The logic was developed in such a way that subsequent runs can be run periodically.

As we were going through this process, we identified some issues regarding how Prosper updates collection statuses and calculates the commission due and owing to the collection agency. A manual audit of the data was performed to clean up known errors to ensure the refund routine runs correctly.

Unfortunately,  the collection status issues have resulted in incorrect data being displayed in the “Collections Statistics” data displayed on the Prosper site. We are working on correcting the problem, but until we are certain that the display of collections statistics is accurate, we have chosen to temporarily stop displaying this data.

In conjunction with this, we have also identified a small population of accounts on which a collection agency commission was inappropriately charged. We are working through this issue and will refund any incorrectly billed agency fees (with interest) at the completion of the process.

We appreciate your patience as we correct these issues.