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Highest Echelon

A personal finance blog. Paying for my University, life and eventually achieving financial freedom.

Prosper Keeps Canceling My Bids, Enter Zopa

Monday, October 16, 2006

A while back, I decided to put a large chunk of my cash in Prosper.com. However, even though I have over $1000 sitting over there, less than half ($300) is in actual loans. Don't think that I'm not actively and aggressively researching and bidding on prospective borrowers. Lately, many of the loans I've bid on have been cancelled due to Prosper being "unable to verify certain information related to the listing." I suspect that the borrowers were not able to verify their accounts before the loan closed. But that's just my guess.

Here's why I'm pissed. In all cases my money was tied up. First the 3 days that it takes for them to transfer the funds from my HSBC to my Prosper holding account. Then while I bid and wait for the loan to close. All the way through to the time Prosper decides the loan must be cancelled due to unverifiable information. All the while my money is floating around and sitting there not earning interest!

Yes, Prosper carefully examines the loans before funding. But Prosper should offer the holding account at least 3% interest.

Luckily Prosper will get some competition from across the pond. Zopa.com is coming to the United States. Zopa has been around for 18 months and offers an interest bearing holding account and 1.5% lender bonus. Competition is a great thing.
posted by johnwilkx, 6:56 PM


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