Prosper Past Due Notice

TrueGeminiNC · ‎02-10-2015

Today - i received an email from Prosper. The body of the email reads as follows--

Please make your payment immediately. If payment is not received:

You will be charged a late fee after 15 days past due.
Your loan will be sent to our collection agents after 15 days past due and your credit report will be impacted.

I am curious as to how accurate the second sentence is. Thoughts?

Jamex · ‎02-10-2015

A couple thoughts:

1) Did they send this email 15 days after your payment was due? Which would mean, you have 15 days from receipt before they report a 30-day late?

2) Is this your first time being late on this loan, or with Prosper? Or have you been late with them in the past? I wonder if they want faster action if it's not the first time.

3) They might be two separate 15-day periods. I.e., after 15 days you get charged a late fee, and then if you don't pay for another 15 day period you go to collections and get a 30d late.

I don't have any personal experience with Prosper so take that all with a grain of salt. Hopefully someone with more applicable experience will chime in.

TrueGeminiNC · ‎02-10-2015

@Jamex wrote:
A couple thoughts:

1) Did they send this email 15 days after your payment was due? Which would mean, you have 15 days from receipt before they report a 30-day late?
2) Is this your first time being late on this loan, or with Prosper? Or have you been late with them in the past? I wonder if they want faster action if it's not the first time.
3) They might be two separate 15-day periods. I.e., after 15 days you get charged a late fee, and then if you don't pay for another 15 day period you go to collections and get a 30d late.

I don't have any personal experience with Prosper so take that all with a grain of salt. Hopefully someone with more applicable experience will chime in.

Because of a bad experience with Prosper, I no longer allow them to automatically debit payments from my checking account which is their preferred payment method. Instead, I initiate payments each month directly from my bank which is then sent via paper check. The 2/9 payment is enroute as we speak and is scheduled to be delivered tomorrow according to BOA.

I was just curious as to how Prosper can forward an account to a collection agency with negative credit implications if an account goes beyond 15 days past due. I thought an account had to be 30 days late before it could be reported to a CRA.

gdale6 · ‎02-10-2015

@TrueGeminiNC wrote:
@Jamex wrote:
A couple thoughts:

1) Did they send this email 15 days after your payment was due? Which would mean, you have 15 days from receipt before they report a 30-day late?
2) Is this your first time being late on this loan, or with Prosper? Or have you been late with them in the past? I wonder if they want faster action if it's not the first time.
3) They might be two separate 15-day periods. I.e., after 15 days you get charged a late fee, and then if you don't pay for another 15 day period you go to collections and get a 30d late.

I don't have any personal experience with Prosper so take that all with a grain of salt. Hopefully someone with more applicable experience will chime in.

Because of a bad experience with Prosper, I no longer allow them to automatically debit payments from my checking account which is their preferred payment method. Instead, I initiate payments each month directly from my bank which is then sent via paper check. The 2/9 payment is enroute as we speak and is scheduled to be delivered tomorrow according to BOA.

I was just curious as to how Prosper can forward an account to a collection agency with negative credit implications if an account goes beyond 15 days past due. I thought an account had to be 30 days late before it could be reported to a CRA.

It does have to be 30 late to report it to the CRA. They can send it to a CA as you would be in default, pretty stupid to do so if you ask me so soon after a missed payment, probably just a moot threat but who knows, you would have to find someone who has dealt with Prosper and defaulted.

TrueGeminiNC · ‎02-10-2015

@gdale6 wrote:
@TrueGeminiNC wrote:
@Jamex wrote:
A couple thoughts:

1) Did they send this email 15 days after your payment was due? Which would mean, you have 15 days from receipt before they report a 30-day late?
2) Is this your first time being late on this loan, or with Prosper? Or have you been late with them in the past? I wonder if they want faster action if it's not the first time.
3) They might be two separate 15-day periods. I.e., after 15 days you get charged a late fee, and then if you don't pay for another 15 day period you go to collections and get a 30d late.

I don't have any personal experience with Prosper so take that all with a grain of salt. Hopefully someone with more applicable experience will chime in.

Because of a bad experience with Prosper, I no longer allow them to automatically debit payments from my checking account which is their preferred payment method. Instead, I initiate payments each month directly from my bank which is then sent via paper check. The 2/9 payment is enroute as we speak and is scheduled to be delivered tomorrow according to BOA.

I was just curious as to how Prosper can forward an account to a collection agency with negative credit implications if an account goes beyond 15 days past due. I thought an account had to be 30 days late before it could be reported to a CRA.
It does have to be 30 late to report it to the CRA. They can send it to a CA as you would be in default, pretty stupid to do so if you ask me so soon after a missed payment, probably just a moot threat but who knows, you would have to find someone who has dealt with Prosper and defaulted.

Yes - I assumed it was nothing more than an idle threat. It just caught my attention.

DaveInAZ · ‎02-10-2015

@TrueGeminiNC wrote:
Yes - I assumed it was nothing more than an idle threat. It just caught my attention.

It's not an idle threat, I looked at my Prosper Promiussary Note and it has that clause that says 15 days late = late fee & handed to collections. You can download your Promisary Note while logged into your account. I've had a Prosper loan since last June and have them auto debit my checking account w/no problems. But if you want to send the payment to them, try sending it earlier, you don't want to be late & go through the hassle.

RobertEG · ‎02-10-2015

They are not necessarily saying they will send to a third party debt collector.

They may have their own internal collection division charged with consideration of potential charge-off, referral, or sale of the delinquent debt.

I would view their advisory notice as being helpful as much as threatening.

It is common to be a few days late on payment, and receipt of such a notice may prevent the delinquency from progressing to 30 days past billing due date, and thus becoming reportable to a CRA. I would rather have received the notice than not be aware of a payment oversight, and then receive a reported 30-late......