Prosper Not Loaning Right Now

Thanks for the update 2nband...is your son home? I can't remember if I read if he was or not.

He comes home on Wednesday. Cannot wait!!!

wow that's a bit of a surprise, I wonder why?

Here is what they said on their website:

Okay, but, what does that mean, exactly? Why are they doing this? Did they have to meet some state or federal regulations? Just curious.

That I am not really sure. This is just what was posted. I know my request was cancelled as were many others. In fact the only requests on the site right now are those that were funded 100%. I got an email telling me that my loan request had been cancelled and that is when I tried to find out why. Something about filing SEC ~ although I am not really sure what that is.

SEC = Securities & Exchange Commission. Usually for publicly traded companies. If they're planning on going public then they need to file paperwork, but it doesn't make sense that they, in essence, are freezing their operations. Hmmm...

Any one have any input on this????????

I really don't know. They do have forums but I have not had a chance to go thru them all to read everything. I believe they are filing paperwork, but other than that...I don't know. From what little bit I read, borrows and lenders are not real happy and are a little confused also. Hopefully someone can come on here and have a little more information. I just didn't want any of us to be sending anyone to that site only to find out that they cannot be apply for a loan.

I found this out the hard way.. I was an observer here for a while before deciding to join and learned about Propser. Decided to give it a try only to find out that they aren't doing anything right now.

Here is what I was able to figure out from Prosper (although they seem to be very weary about giving out any information at all). They have determined that it is necessary for them to consider each loan as a security. Apparently, they weren't previously operating it this way previously. But now they have to comply with the rules of the SEC. According to their CCO they were previously not subject to SEC regulations, but a change was made (I couldn't figure out whether it was a change by Prosper, or a change by the SEC), and they are now required to comply with the SEC. Unfortunately, since they are not publicly traded, there is no way to really get any more information. When I asked if it was because they planned on going public, the response was that their future plans are considered private and confidential. And no time period was given for the completion of the registrations.

I hope this helps anyone who is still interested.

yeah I was wondering why they are unable to help me out. i made the cutoff for their credit score eligibility and was led to lendingtree and they denied me of a loan. thanks for clearing this up!!

They are going public to raise capital. Look at the S-1 they filed on the sec dot gov site.

They're losing a ton though. Not sure how they can make that up since they're fees are so small.

This may answer your questions --

Apparently Prosper is in some serious troubles as the SEC (Securities and Exchange Commission) has issued a CEASE AND DESIST Order against the firm.

If you search for "Prosper" on SEC dot gov (Securities and Exchange Commission) you can download the PDF and see for yourself.