Prosper.com

[Brat]

Well, it was a thought.

 

[eridanus]

Well, I don't like crack dealers, that's for sure. But, I think people need to take responsibility for their actions. If people get stuck in a cycle of borrowing, they have a problem.

A minimum wage job doesn't allow for a whole lot of flexibility when something goes awry. It's easy to imagine how a pay-day loan cycle develops.

OTOH, some of my tenants get their cars re-possessed, call me to replace the garage door opener that was in said car, and then call a week later asking for permission to install a dish on the side of the house.

 

[clifp]

IIRC, there is a law capping the interest rate that deployed serviceman can be charged. I believe it is in 6%. So I think the payday loan boys are SOL if that happens. There was a thread about it on the Prosper discussion boards. My opinion was that I would be fine with capping my interest rate to serviceman. Of course as someone pointed out I didn't have any loans to serviceman (since changed).

 

[rogersteciak]

I've been investing through prosper for a few months now, and so far am impressed overall with the system and the returns.

I started lending money on Prosper last July. I've made over 200 loans at $50 a loan. My projected return after fees and defaults is 12%. These loans are unsecured and therefore risky, which is why I have well under 5% of my net worth there. I consider people-to-people lending to be a new asset class and my money on Prosper is risk capital to try it out.

 

[cube_rat]

Never mind loan defaults, I see creative scams on the horizon. and not from the lender side either...

 

[laurence]

Cube_rat, no! Why the goddess avatar again?? Arg!

 

[Peaceful_Warrior]

What kind of creative scams? I'm guessing without identity theft, the scams will be limited to "I need X amount of dollars for [insert heartwarming good reasons here]" and then the person jus chooses to default with the money.

This would also be good to know now that I have my own group on there. My risk is still limited though to a little over a grand. Enough to test the waters, but not enough to feel bad about losing it all (which won't happen, but I try to never invest money that I'm 'afraid' to lose).

Never mind loan defaults, I see creative scams on the horizon. and not from the lender side either...

 

[cute fuzzy bunny]

Cube_rat, no! Why the goddess avatar again?? Arg!

She's left me with no choice.