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
  • Prosper will attempt to withdraw payment from your bank account a second time.

Day 16: Second failed payment notification; late fee assessed; loan sent to our collection agents
  • 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 and fees accrued.
  • Your loan will be sent to our collection agents to collect the amount due and any fees accrued.

Month 1: Late fee assessed; collections continue
  • 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.
  • Collections attempts continue. Our collection agents 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.
  • Our collection agents 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.
  • Our collection agents 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; collections continue; 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.
  • Collectors will continue attempting to collect the balance due.
  • 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.