My First Late Group Loan Payment (and why Groups add value)
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Well, I guess it was inevitable that one of P2P-Loans.com's Prosper loans would go late. Would I have to aggressively pursue this person via email, call 3 different phone numbers, send them snail mail, call their place of work, etc. to plead for their payment (after all, these folks are only known to me online and I don't have a physical connection to them, right?). Well, that was entirely NOT the case . This borrower, who happens to be an "E" borrower with an ugly credit record due to a divorce was one I took a chance on because I made a "connection" with her on Prosper. I spent a number of weeks getting to know her, vetting and reviewing all of her information and helping her present her information more clearly in her listing. I was touched by her story and felt compelled to help her get a loan that could change her life. I also felt that she was a good credit risk because she was able to demonstrate that she was sincere about paying the loan back and was capable of doing so with her high quality job with a great company.
Well, I learned of this late payment today, but I was not at all upset. Why, you ask, was I not upset at the prospect of a late payment on a loan I put $300 into myself and hundreds more from friends and family that had confidence in my group's listings? Well, because I didn't learn about it from Prosper! The borrower emailed me immediately and was very upset that she had let our group down. We took her in and helped her when she was down and she felt terrible that she had let P2P-Loans.com group members down since we had spent so much time and energy on her listing and helping her get the loan. Well, before I could even respond to her email, she made her payment and will be current by early next week (since it takes a day or two for Prosper to process her payment).
Here is a portion of the email I received from this borrower with whom I've established a strong connection on Prosper and Prosper alone:
"As you may already know, my payment didn't go through yesterday. I have been keeping my money in savings verses checking to keep myself in check with my expenses. Unfortunately, when Prosper tried to take the payment yesterday, 3 other automatic payments had already gone through and the remainder of my money was still in my savings account. I didn't even know it was late until I got a notice this morning. I'm so sorry. ...I will call my bank to transfer funds and then pay on my loan ASAP.
I'll be sure this doesn't happen again. I'm so sorry."
Of course I emailed her back and told her not to feel bad for an honest mistake as we are all human and "life happens". She and I have been in regular touch since her loan funded and she is making great progress on getting her fiancial life back in order, so I was never worried about her making payments. She's an honest, hard working woman who deserved a chance. She also convinced me that she was a reasonable credit risk.
Well, the sum of the story is that this borrower would have NEVER funded on Prosper without P2P-Loans.com's help. She was an "E" borrower in a rate capped state with several thousand dollars in current DQs and a very unappealing credit score. BUT, with the help of my group, she was able to get funded and get back on track with her life. Additionally, I am very comfortable that she'll continue to make her payments because she feels such a strong affinity to P2P-Loans.com and doesn't want to let her group down. THIS IS THE NORM IN MY GROUP - WE GET TO KNOW OUR BORROWERS, SUPPORT THEIR LISTINGS AND HELP THEM OUT WHEREVER WE CAN. THAT'S WHAT COMMUNITY IS ALL ABOUT ON PROSPER, BUT PROSPER SEEMS TO BE MISSING THE POINT.
Unfortunately, Prosper recently eliminated what was left of the meager rewards Group Leaders get for spending numerous hours with borrowers. And, as a result, I probably won't be helping future borrowers such as the one referenced here get funded. Folks like this borrower will be the real losers because of this change.
GL - www.P2P-Loans.com
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Well, I guess it was inevitable that one of P2P-Loans.com's Prosper loans would go late. Would I have to aggressively pursue this person via email, call 3 different phone numbers, send them snail mail, call their place of work, etc. to plead for their payment (after all, these folks are only known to me online and I don't have a physical connection to them, right?). Well, that was entirely NOT the case . This borrower, who happens to be an "E" borrower with an ugly credit record due to a divorce was one I took a chance on because I made a "connection" with her on Prosper. I spent a number of weeks getting to know her, vetting and reviewing all of her information and helping her present her information more clearly in her listing. I was touched by her story and felt compelled to help her get a loan that could change her life. I also felt that she was a good credit risk because she was able to demonstrate that she was sincere about paying the loan back and was capable of doing so with her high quality job with a great company.
Well, I learned of this late payment today, but I was not at all upset. Why, you ask, was I not upset at the prospect of a late payment on a loan I put $300 into myself and hundreds more from friends and family that had confidence in my group's listings? Well, because I didn't learn about it from Prosper! The borrower emailed me immediately and was very upset that she had let our group down. We took her in and helped her when she was down and she felt terrible that she had let P2P-Loans.com group members down since we had spent so much time and energy on her listing and helping her get the loan. Well, before I could even respond to her email, she made her payment and will be current by early next week (since it takes a day or two for Prosper to process her payment).
Here is a portion of the email I received from this borrower with whom I've established a strong connection on Prosper and Prosper alone:
"As you may already know, my payment didn't go through yesterday. I have been keeping my money in savings verses checking to keep myself in check with my expenses. Unfortunately, when Prosper tried to take the payment yesterday, 3 other automatic payments had already gone through and the remainder of my money was still in my savings account. I didn't even know it was late until I got a notice this morning. I'm so sorry. ...I will call my bank to transfer funds and then pay on my loan ASAP.
I'll be sure this doesn't happen again. I'm so sorry."
Of course I emailed her back and told her not to feel bad for an honest mistake as we are all human and "life happens". She and I have been in regular touch since her loan funded and she is making great progress on getting her fiancial life back in order, so I was never worried about her making payments. She's an honest, hard working woman who deserved a chance. She also convinced me that she was a reasonable credit risk.
Well, the sum of the story is that this borrower would have NEVER funded on Prosper without P2P-Loans.com's help. She was an "E" borrower in a rate capped state with several thousand dollars in current DQs and a very unappealing credit score. BUT, with the help of my group, she was able to get funded and get back on track with her life. Additionally, I am very comfortable that she'll continue to make her payments because she feels such a strong affinity to P2P-Loans.com and doesn't want to let her group down. THIS IS THE NORM IN MY GROUP - WE GET TO KNOW OUR BORROWERS, SUPPORT THEIR LISTINGS AND HELP THEM OUT WHEREVER WE CAN. THAT'S WHAT COMMUNITY IS ALL ABOUT ON PROSPER, BUT PROSPER SEEMS TO BE MISSING THE POINT.
Unfortunately, Prosper recently eliminated what was left of the meager rewards Group Leaders get for spending numerous hours with borrowers. And, as a result, I probably won't be helping future borrowers such as the one referenced here get funded. Folks like this borrower will be the real losers because of this change.
GL - www.P2P-Loans.com
posted by Blogging Man @ 3:19 PM
Seed Newsvine
4 Comments:
At September 8, 2007 6:04 AM ,
Chris said...
This is what it's supposed to be about. Too bad people are more interested in complaining than seeing it.
"I spent a number of weeks getting to know her, vetting and reviewing all of her information and helping her present her information more clearly in her listing."
So as a "greedy GL" who spent weeks with this one borrower, how does the GL rewards you got for it break down to an $/hr figure ?
At September 8, 2007 9:03 AM ,
P2P-Loans.com said...
Actually, so far the GL rewards per hour has been $0 / hour. I expect it will rise exponentially to about $0.50 per hour.
But thanks for the comment. I do think that this is what "community" on Prosper is all about. Not only does this borrower feel a connection with our group, but I genuinely care about her wellbeing as well. I want her to succeed and I am willing to do what I can to help. All of my group members have an open invitation to call me or email me for free advice anytime. If they get in a short term bind, I encourage them to email me knowing upfront they won't face an irate GL, but a compationate friend that might be able to help them set a plan to get back on course. Maybe I am just being too idealistic, but I really do think this can work.
At September 14, 2007 3:40 PM ,
NewHorizon said...
"I genuinely care about her wellbeing as well..."
I guess I'm not getting it.
The connections with - and the caring for - borrowers who need help is noble, and should be applauded. But yet it all seems to come to an abrupt halt when the "meager rewards" stop? I hope you can understand how this might call into question how "genuine" your feelings are.
At September 14, 2007 5:08 PM ,
P2P-Loans.com said...
NewHorizon - thank you for your comment, but your facts are wrong. I have stated on many places (on the Prosper forums and on my Prosper group page) that I will continue to support all of my current group members with their current AND ANY FUTURE loans. I will also continue to offer them free advice and support as they improve their financial future. I am not abandoning my group members - I stand behind my commitment to them 100%.
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