Scott On Money

As you may know if you read this blog regularly I’ve been putting some of my capital to work at Prosper, a person to person lending site.

I’ve pointed out some of the risks of Prosper before.

I thought I’d share with you another risk that hadn’t occurred to me at first, that of cancellations. With the loans I’ve bid on over the past month or so two have ended up being canceled due to Prosper being "unable to verify certain information relating to the listing'. The downside to this in both cases my money was tied up from the time I bid through the time left on the loan and then through to the time that Prosper decides the loan can’t be funded due to bogus, fraudulent or unverifiable information.

I am happy that Prosper carefully vets the loans before funding. This helps me as a lender avoid borrowers that may skip or be less than forthcoming with there information.

But Prosper; please make the money in our accounts interest bearing! This will definitely help me feel better about having money sitting around not in a loan. Keep in mind that I want to deploy this money to loans. I just don’t want to do so foolishly.

For more on Prosper read about saving time on Prosper.com.